Despite Elon Musk suing OpenAI for allegedly straying from its nonprofit origins, Josh Kushner, founder of Thrive Capital and a major OpenAI investor, offered strong praise for Musk during the Fortune Global Forum last week.
“I have deep admiration and respect for Elon,” Kushner said, emphasizing Musk’s dedication to his principles.
Thrive Capital has ties to Musk through investments in SpaceX and political connections to Donald Trump, who recently appointed Musk to co-lead the Department of Government Efficiency. Kushner downplayed concerns about Musk’s influence on OpenAI, highlighting Musk’s intentions to “do right by everyone.”
Musk, who co-founded OpenAI and contributed $44 million to its establishment, launched xAI last year as a rival AI venture. His lawsuit against OpenAI now includes CEO Sam Altman, co-founder Greg Brockman, and new defendants like Microsoft and former OpenAI board members. The amended complaint alleges that OpenAI is pressuring investors to avoid funding competitors like xAI.
Kushner avoided commenting on the lawsuit's tensions but acknowledged the respect between OpenAI’s leaders and Musk. Thrive recently led OpenAI’s $6.5 billion funding round at a $157 billion valuation, with Kushner’s fund contributing $1.3 billion. Thrive reportedly has an option to invest an additional $1 billion if OpenAI meets its revenue targets.
Meanwhile, reports indicate OpenAI has asked investors to steer clear of specific rival AI companies, including xAI. Thrive has not invested in xAI or other direct OpenAI competitors, according to PitchBook.
Thrive Capital continues to expand its reach, raising $5 billion this year across early- and late-stage funds, bringing its assets under management to $15.5 billion. Kushner’s comments underscore his intent to maintain balance between the leaders of two of his high-profile portfolio companies amid an intensifying AI industry rivalry.