Musk-Altman Rivalry: "UFC Match" for AI Dominance

A rivalry between Elon Musk and OpenAI CEO Sam Altman could become a "UFC match" funded by shareholders. That's according to Aswath Damodaran, known as the "dean of valuation." Damodaran highlights risks for SpaceX's AI business ahead of its anticipated IPO. He points to competitive pressure, heavy investment, and the "ego" battle with Altman. Musk has been a vocal critic of OpenAI and Altman, and recently lost a lawsuit against the AI company. SpaceX and Anthropic have filed for their IPOs, with OpenAI's submission expected soon. Damodaran suggests SpaceX could overreach in the AI market, leading to misplaced investments. He also notes that while Starlink shows strong growth, a rumored $1.8 trillion valuation for SpaceX might be too high due to margin pressures and the capital intensity of its xAI business. This intense personal rivalry could significantly impact the financial future of these major AI players.