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Elon Musk left OpenAI due to conflict of interest with Tesla
OpenAI, the nonprofit research firm co-founded by Elon Musk, announced that the serial tech entrepreneur is stepping down from the organization’s board of directors. According to an official announcement by the nonprofit, Elon’s departure is partly due to Tesla’s AI projects, which could result in a potential conflict of interest for the CEO.
Musk’s departure from OpenAI’s board does not mean that he is relinquishing ties with the nonprofit, however. In a blog post about its new supporters, the research firm asserted that the Tesla CEO will be staying on as a benefactor and advisor for the organization.
“Elon Musk will depart the OpenAI Board but will continue to donate and advise the organization. As Tesla continues to become more focused on AI, this will eliminate a potential future conflict for Elon.”
As Tesla continues to evolve its Autopilot suite of features and aims to complete its first coast-to-coast fully autonomous drive this year, the Silicon Valley electric carmaker is said to be working on its own AI-based chips that will power the company’s future fleet of driverless cars. Musk revealed his efforts to produce a custom AI chip during a machine learning conference held last year, telling event attendees that Tesla is developing specialized AI hardware that will be the “best in the world.” According to The Register, Musk told event attendees, “I wanted to make it clear that Tesla is serious about AI, both on the software and hardware fronts. We are developing custom AI hardware chips”.
Stepping down from OpenAI’s board seems to be a logical step for Musk as his focus on developing advanced artificial intelligence systems can be misconstrued by a non-profit that aims to be the watchdog for friendly AI development. Prior to the announcement of Elon Musk’s departure from OpenAI’s board, the nonprofit published a paper discussing the possible dangers of AI-based attacks. According to OpenAI’s study, it is now time for policymakers and individuals to be aware of ways that AI-based systems can be used maliciously, especially considering the ever-evolving artificial intelligence landscape.
To conduct the study, OpenAI collaborated with a number of researchers from other organizations, including the Future of Humanity Institute, the Centre for the Study of Existential Risk, the Center for a New American Security, and the Electronic Frontier Foundation.
Discussing the findings of their research, the authors of the study wrote that while investigations on the benefits of AI are widespread, studies on the dangers of advanced, intelligent machines are relatively few. As the field of artificial intelligence begins to expand and evolve, OpenAI’s researchers believe that threats associated with the technology would also start to grow and develop.
As noted in the study, artificial intelligence can expand existing threats, since the scalable use of AI technology can be utilized to lower the cost of attacks. With AI, even real-world attacks requiring human labor can be accomplished by machines that could think within and beyond their programming.
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OpenAI’s new paper also discussed the emergence of new threats, which could rise through the use of systems that engage in tasks that are impractical for humans. The researchers also advised that the time might soon come when the AI-focused attacks can be finely targeted and challenging to attribute. With these in mind, the OpenAI researchers, together with co-authors of the study, recommended a series of contingencies that policymakers, as well as those involved in the research field, can implement to prevent and address scenarios when intelligent systems can be used maliciously.
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According to the recently published OpenAI paper, the time is right for policymakers to collaborate with technical researchers to investigate, prevent, and mitigate potential malicious uses of artificial intelligence. OpenAI also advised engineers and researchers to acknowledge the dual-use nature of their work, allowing misuse-related considerations to be part of their research priorities. Furthermore, the nonprofit called for more mature methods when addressing AI’s dual-use, especially among stakeholders and domain experts involved in the field.
In conclusion, the OpenAI researchers and their peers admitted that while uncertainties remain in the AI industry, it is almost certain that artificial intelligence will play a huge role in the landscape of the future. With this in mind, a three-pronged approach — consisting of digital security, physical security, and political security — would be a great way to prepare for the upcoming use and possible misuse of artificial intelligence.
Co-founded by Tesla and SpaceX CEO Elon Musk back in 2015, OpenAI is a nonprofit research firm that aims to create and distribute safe artificial general intelligence (AGI) systems. As we noted in a previous report, OpenAI seems to be giving clues that it is ramping up its activity this year, as shown in a recent job posting for a Recruiting Coordinator who will be tasked to train and onboard the company’s new employees.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
Tesla’s AI lead Ashok Elluswamy doubled down on the company’s strategy regarding Full Self-Driving’s speed settings, and owners are definitely confused.
Earlier versions of Full Self-Driving allowed owners to set a max speed that the vehicle could travel while operating under the semi-autonomous driver assistance platform. This allowed more customization for the driver, giving them the ability to experience FSD’s robust performance with their own personal preferences.
Speed is massively important for obvious reasons — it’s not only a question of keeping the vehicle occupants comfortable by traveling at a safe speed, but it’s also something that could contribute to a ticket or infraction from law enforcement.
With the release of FSD v14 last year, Tesla removed the ability to set a max speed and instead opted for five Speed Profiles, ranging from “Sloth,” the most conservative, to “Mad Max,” the most aggressive and spirited. These profiles not only control speed, but also how frequently the vehicle will execute passes, perform lane changes, and other contributing factors.
The removal of the Max Speed setting was a major complaint amongst the Tesla community because it left owners scrambling for a way to experience suitable behaviors while traveling at an appropriate speed. Most felt the driving profiles would be a good indicator of the behaviors, while speed would still be left up to the discretion of the driver.
Instead, Tesla’s Speed Profiles determine both, and the constant tinkering of how they behave has been a major bottleneck and point of confusion for both owners and the company. From update to update, the Speed Profiles will change, sometimes more drastically than others. Some owners have complained that the “Standard” profile is too fast, while others have experienced “Mad Max” traveling below the speed limit:
What has happened to Mad Max?
At one point it was going 32 in a 35. Traffic ahead had pulled away considerably https://t.co/bjKvaMVTNX pic.twitter.com/aaZSWmLu5v
-— TESLARATI (@Teslarati) January 24, 2026
These things change with each update, but the big complaint is that owners are on the hook for any tickets that come from FSD’s infractions; that’s the caveat of the suite being named FSD (Supervised). It ultimately means the driver is responsible, and the automaker has no liability when it comes to speeding tickets or general traffic infractions.
It is the driver’s responsibility to take over or adjust based on this.
Elluswamy essentially confirmed that there are no plans to bring back Max Speed control, because it is what he referred to as “an anti pattern.” He then echoed something that CEO Elon Musk has started to really push with FSD, and that’s the idea that Tesla is really honing in on the preferences of the driver.
Max speed control is an anti pattern.
We are working on better learning of user’s implied preferences.
— Ashok Elluswamy (@aelluswamy) August 3, 2026
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Owners were confused by Tesla’s decision, stating that there must be a better way, especially considering disengagements for incorrect speeds are common:
This…. is not the way
— Kyle Conner (@itskyleconner) August 4, 2026
😭 I appreciate this mentality ! But currently the no.1 reason I disengage in Australia is incorrect speed zones.
— Ryan’s Model Y (@ryanjaycowan) August 3, 2026
This is fine but you need to start accepting liability for speeding tickets then. https://t.co/lyCgdA83gQ
— Jeremy Judkins (@jeremyjudkins_) August 4, 2026
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Okay https://t.co/nOvoXQkNg1 pic.twitter.com/jGRtF2xtox
— Chad Moran (@ChadMoran) August 3, 2026
From personal experience and using FSD for over 72 percent of my driving miles since v14 was released late last year, I make Speed Profile adjustments constantly. If FSD is traveling a tad too quickly, I will scale it back, and if it’s too conservative, I’ll make it more aggressive.
I don’t complain about making the Speed Profile changes too frequently, but it would certainly be nice to have it happen less frequently. There are far too many times I am concerned about getting a ticket, even in Standard mode.
The biggest issue for me, personally, which seems to be echoed throughout the community, is the fact that Tesla’s goal is to minimize disengagements. Many drivers are stating that speed is a major reason for disengagements.
However, Tesla is not willing to bring back this one level of input because it would technically be a regression.
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Whether it’s right or wrong in your opinion, it is what Tesla is going with, and it seems like it has pivoted quite a bit from its other strategies for minimizing interventions by pushing its AI to behave in a way that would fit the occupant’s personal preferences.
SpaceX reports beat in first earnings while minimizing losses
Elon Musk sends second warning to SpaceX shorts ahead of first earnings
