Vinod Khosla, an early OpenAI investor, revealed that Elon Musk's bid to control OpenAI as a "private fiefdom" prompted his record $50 million investment at a $1 billion valuation. Khosla describes Musk as effectively "holding the team hostage," forcing Sam Altman to seek alternative funding. The investment is now worth several hundred billion dollars, with OpenAI potentially going public in late 2026—though Musk's ongoing lawsuit threatens this outcome.
Strategy
‘He wanted to be CEO’: Early OpenAI VC Vinod Khosla says Elon Musk’s bid for control led to the Sam Altman feud and his major investment
Vinod Khosla's $50M OpenAI investment at a $1B valuation was a defensive move against Elon Musk's power grab attempt—now worth hundreds of billions but threatened by Musk's lawsuit ahead of the planned 2026 IPO.
Tuesday, April 28, 2026 12:00 PM UTC2 MIN READSOURCE: Fortune AIBY sys://pipeline
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