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    Home»Tech News»How Sam Altman Sidestepped Elon Musk to Win Over Donald Trump
    Tech News

    How Sam Altman Sidestepped Elon Musk to Win Over Donald Trump

    Team_Prime US NewsBy Team_Prime US NewsFebruary 8, 2025No Comments11 Mins Read
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    At President Trump’s inauguration, Sam Altman, the chief govt of OpenAI, was relegated to the overflow room whereas different tech billionaires like Elon Musk and Mark Zuckerberg took prime spots on the dais below the Capitol rotunda.

    However days earlier, earlier than flying into Washington, Mr. Altman was on the cellphone with Mr. Trump, making ready an announcement that may outflank Mr. Musk and put Mr. Altman’s firm on the heart of the brand new administration’s agenda for synthetic intelligence.

    On the 25-minute name, Mr. Altman appealed to Mr. Trump’s love of an enormous story and of an enormous deal. Mr. Altman advised the president-elect that the tech trade would obtain synthetic basic intelligence — the hypothetical second when know-how matches human intelligence — in the course of the Trump administration, in keeping with three individuals aware of the decision. And to get there earlier than opponents from China, OpenAI, Oracle and SoftBank had accomplished a $100 billion deal to construct knowledge facilities throughout the nation.

    The day after the inauguration, Mr. Altman stood behind Mr. Trump within the Roosevelt Room of the White Home as Mr. Trump announced the deal, known as Stargate, and described it because the “largest A.I. infrastructure undertaking by far in historical past.”

    Stargate had been within the works for months, however Mr. Altman and his companions timed the announcement to permit Mr. Trump to take credit score for it in his first days in workplace.

    “We wouldn’t have the ability to do that with out you, Mr. President,” Mr. Altman mentioned in entrance of a gathering of reporters.

    Since Mr. Trump’s election, the billionaires of Silicon Valley have jockeyed to affect the brand new administration. None of them have been extra profitable than Mr. Musk, who backed the Trump marketing campaign with greater than $250 million of his personal cash and now apparently has the ability to slash jobs and budgets across the federal government.

    Mr. Trump’s election and Mr. Musk’s insider standing with the brand new administration might have shut the door on Mr. Altman’s affect in Washington. Mr. Altman, 39, was a longtime Democratic donor and loud critic of Mr. Trump throughout his first time period. What’s extra, he was close to the highest of Mr. Musk’s enemies listing. The 2 had once fought for control of OpenAI, and are still battling it out in court. Mr. Musk additionally created his own A.I. company to compete head on with Mr. Altman’s firm.

    That Mr. Altman managed to outflank Mr. Musk and make OpenAI the centerpiece of the brand new administration’s nascent A.I. agenda to remain forward of China was a testomony to Mr. Altman’s expertise for form shifting and practically 20 years of deal making in Silicon Valley. It additionally provided a view of Mr. Trump’s versatile loyalties in the case of being wooed, in addition to the bounds of Mr. Musk’s capability to affect tech coverage.

    Even earlier than the presidential election, Mr. Altman quietly labored his manner into Mr. Trump’s interior circle, in keeping with interviews with greater than a dozen individuals aware of Mr. Altman’s drive to win over Mr. Trump. Lots of the particulars of that courtship, which went on for months, have by no means been reported earlier than.

    In a press release emailed to The New York Instances, the OpenAI spokeswoman Liz Bourgeois mentioned the corporate appeared ahead to working with President Trump to ensureA.I.’s “potential for driving financial progress and advancing scientific discovery that advantages as many individuals as attainable.”

    The White Home didn’t reply to requests for remark.

    Mr. Altman leaned on relationships with Doug Burgum, the governor of North Dakota and Mr. Trump’s eventual nominee for inside secretary, and two different Trump allies: Larry Ellison, co-founder of the software program firm Oracle, and Masayoshi Son, founding father of the Japanese conglomerate SoftBank.

    In the course of the Biden administration, Mr. Altman had become a familiar face in Washington, assembly with White Home officers and a bipartisan group of lawmakers to information A.I. laws. He often communicated through a personal textual content thread with Commerce Secretary Gina Raimondo, in keeping with an individual aware of the association who spoke on the situation of anonymity.

    Because the 2024 election approached, Mr. Altman questioned President Biden’s capability to win. However he did donate to Mr. Biden’s re-election marketing campaign in 2023, in addition to to many state Democratic Get together organizations.

    He additionally donated to Republican campaigns (however to not the Trump marketing campaign) and often communicated with Republican lawmakers. And in non-public, OpenAI was hedging its bets. In early June, two OpenAI executives met with Mr. Trump in a lodge room in Las Vegas, in keeping with two individuals aware of the assembly. Mr. Altman was slated to attend the assembly, too, however bowed out after testing optimistic for Covid.

    The assembly was organized by Mr. Burgum. He had a yearslong relationship with OpenAI’s president, Greg Brockman, who was born in Thompson, N.D. Some OpenAI staffers name them the 2 most vital tech individuals the state has ever produced.

    In the course of the assembly in Las Vegas, Mr. Brockman and OpenAI’s chief working officer, Brad Lightcap, confirmed Mr. Trump the corporate’s A.I. video generator, Sora, which had not but been launched to the general public, the 2 individuals mentioned. With the know-how, anybody can generate movies — like a herd of woolly mammoths trotting via a snowy meadow — just by typing a sentence right into a field on a pc display screen.

    To construct this type of know-how, they defined, corporations like OpenAI wanted huge pc knowledge facilities backed by monumental quantities {of electrical} energy. They centered on language round building and infrastructure, interesting to Mr. Trump’s actual property background, and mentioned that these big services could be important as the USA raced with China to steer the event of A.I.

    As he accepted the Republican nomination the next month, Mr. Trump trumpeted the significance {of electrical} energy on this planet of A.I. “A.I. wants great — actually, twice the electrical energy that’s accessible now in our nation, are you able to think about?” he mentioned.

    However as Mr. Altman and different OpenAI executives labored to strengthen political connections, they had been struggling to safe the $100 billion they wanted for Stargate.

    Mr. Altman’s biggest problem has been the corporate’s dependence on buyers. OpenAI raised over $13 billion from the Microsoft in return for an unique deal to buy its computing energy from the tech big. However OpenAI wished much more computing energy.

    In late 2023, as Mr. Altman was negotiating with Microsoft’s chief govt, Satya Nadella, to construct $100 billion in new knowledge heart infrastructure — a undertaking that was already known as “Stargate” — the OpenAI board of directors unexpectedly fired him. He was reinstated 5 days later, however Mr. Nadella was spooked and determined to not put within the cash for Stargate. Mr. Altman wanted one other method to construct Stargate, in keeping with two individuals aware of the Microsoft negotiations.

    (The New York Instances has sued OpenAI and its associate, Microsoft, accusing them of copyright infringement of stories content material associated to A.I. programs. OpenAI and Microsoft have denied these claims.)

    Mr. Altman had been discussing possible investments with SoftBank and Mr. Son. The 2 males met at OpenAI’s places of work earlier in the summertime of 2024, in keeping with three individuals aware of their discussions. After Microsoft agreed to an exception in its unique contract with OpenAI, the start-up signed a $10 billion knowledge heart cope with Oracle and pushed for one thing a lot larger.

    As Oracle constructed a brand new knowledge heart campus in Abilene, Texas, Mr. Altman hoped to increase this into the $100 billion undertaking he and Mr. Nadella had envisioned months earlier. However the Biden administration had expressed concern over OpenAI’s efforts to safe extra cash from buyers within the Center East. And potential buyers anxious that the federal government could be sluggish to offer approvals for a undertaking that required monumental quantities of land and electrical energy.

    The sentiment surrounding the deal modified after Trump was elected. Over the subsequent a number of weeks, SoftBank, Oracle, and OpenAI every agreed to place cash into Stargate, mentioned three individuals aware of the negotiations. In addition they secured funding from MGX, a tech funding agency managed by the United Arab Emirates.

    Because the inauguration approached, lots of Mr. Altman’s A.I. rivals met with the president-elect at Mar-a-Lago in Palm Seaside, Fla. This included Mr. Musk and Mr. Zuckerberg, who has been giving freely Meta’s A.I. know-how in an effort to devalue OpenAI’s technology.

    The perfect Mr. Altman might do was a gathering in Palm Springs exterior of Mar-a-Lago with Howard Lutnick, Mr. Trump’s nominee for commerce secretary, in keeping with three individuals aware of the assembly.

    After donating $1 million to Trump’s inaugural fund, Mr. Altman was invited to the inaugural festivities. However a mutual acquaintance — it’s not clear who — organized Mr. Altman’s Friday afternoon cellphone name with the president-elect, in keeping with 4 individuals aware of the preparations.

    On Inauguration Day, Mr. Altman, Mr. Ellison and Mr. Son had been on the Capitol Constructing ceremony however had been largely missed by the general public. Early the subsequent day, they gathered in a collection of the five-star Riggs lodge in Washington to map out how they’d unveil their partnership to the world, in keeping with 4 individuals aware of the assembly. As they nibbled on chilly cuts and fruit, they tried to place the draft of a weblog publish on a display screen hanging on the wall. At first, they couldn’t get the display screen to work. Then Mr. Altman, the youngest of the three, received it working.

    Within the afternoon, the Stargate companions rode in a caravan to the White Home and walked to the customer’s entrance for a public occasion they’d agreed upon in that earlier cellphone name with Mr. Trump. However they had been left ready within the 10-degree chill for 10 to twenty minutes. On Mr. Trump’s second day in workplace, there have been issues with the White Home pc system. And Mr. Ellison had forgotten his driver’s license, in keeping with three individuals aware of the second.

    Ultimately, Mr. Altman, Mr. Son, and Mr. Ellison adopted Mr. Trump into the Roosevelt Room. In his opening remarks, Mr. Trump referred once more to the electrical energy calls for of knowledge facilities, which he described as “huge, lovely buildings which can be going to make use of lots of people.”

    He launched Mr. Altman, who was sporting a grey go well with, blue tie, and American flag pin on his lapel, as “by far the main knowledgeable, based mostly on every little thing I learn.”

    That evening, in a pair of posts to X, Mr. Musk attacked the deal, insisting that Mr. Altman and his companions didn’t have the preliminary $100 billion for his or her undertaking, not to mention the $500 billion they promised to finally make investments sooner or later.

    The subsequent day, Mr. Altman took to X with new observations in regards to the president.

    “i’m not going to agree with him on every little thing, however i believe he might be unbelievable for the nation in some ways!” he wrote.

    The administration didn’t facet with Mr. Musk. “The American individuals ought to take President Trump and people C.E.O.s’ phrases for it,” Karoline Leavitt, the White Home press secretary, advised Fox Information the identical day. “These investments are coming to our nice nation, and American jobs are coming together with them.”

    The president additionally demurred. “He hates one of many individuals,” Mr. Trump advised reporters, in an obvious reference to Mr. Musk’s dislike for Mr. Altman. “However I’ve sure hatreds of individuals too.”

    Lower than per week later, U.S. financial markets unexpectedly tumbled after a Chinese language start-up known as DeepSeek unveiled highly effective A.I. know-how that was constructed with fewer specialised chips than many specialists thought attainable. Pundits had been questioning whether or not Stargate was the best transfer.

    Mr. Altman flew again to Washington and had dinner with Republican lawmakers two days later. The subsequent morning, he spoke at a personal occasion with members of Congress, policymakers and suppose tank leaders within the shadow of the Capitol, in a gleaming rented area near the lobbying retailers of Google and Amazon.

    When Mr. Altman was requested what DeepSeek meant as he and his companions dedicated $100 billion to new knowledge facilities, Mr. Altman edited the query. “$500 billion,” he mentioned. Then he answered it.

    As corporations like OpenAI proceed to extend their computing assets, he mentioned, their A.I. applied sciences proceed to get higher.

    “We must always wish to hold doing that,” he mentioned.

    Theodore Schleifer contributed reporting.



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