OpenAI Develops Social Media Platform, Escalating Rivalry With Musk
1min read OpenAI, led by CEO Sam Altman, is reportedly developing a social media platform that could compete directly with Elon Musk’s X. This initiative marks a significant escalation in the ongoing dispute between the two tech giants. The project, currently in its early stages, is described as an internal prototype that integrates a social feed with ChatGPT’s image generation capabilities. Altman has reportedly begun seeking feedback on this concept, indicating that the development is still in its nascent phase.
The proposed platform, which leverages generative AI, positions OpenAI in direct competition with Musk and potentially with meta, whose upcoming AI assistant platform is also rumored to include social features. Earlier this year, rumors surfaced about Meta’s plans for a social app, to which Altman responded on X with a playful challenge. Now, it appears that OpenAI is moving forward with its own social media venture, adding another layer to the complex dynamics between these tech leaders.
The development of this social media platform comes at a time when OpenAI and Musk are engaged in a heated legal and public relations battle. Last week, OpenAI filed a countersuit against Musk, alleging that he attempted a hostile takeover with a $97 billion offer and employed “bad-faith tactics” to gain control of the company he co-founded. OpenAI is seeking damages and a court order to prevent further interference from Musk. Altman had previously responded to Musk’s February buyout offer by jokingly proposing to buy Twitter for $9.74 billion.
Musk initiated legal action against OpenAI in March, accusing the company of deviating from its nonprofit roots. A judge denied Musk’s request to halt OpenAI’s transition to a capped-profit structure but expedited the case for a trial in fall 2025. OpenAI, in response, claims that Musk was the first to advocate for a for-profit model, provided he was in control. Internal emails released by OpenAI reveal that Musk proposed taking control of the board and becoming CEO in 2017, stating, “I would unequivocally have initial control of the company.”
Musk has since launched xAI, which recently merged with X in an all-stock deal valuing xAI at $80 billion. xAI’s flagship model, Grok-3, was introduced in February and is expected to scale significantly. Meanwhile, OpenAI secured a $40 billion funding round led by SoftBank in March, which valued the company at $300 billion. This funding round underscores the financial backing and support that OpenAI continues to receive, despite the ongoing disputes with Musk.
