Elon Musk tried to take control of OpenAI, the creator of ChatGPT, in early 2018 but Sam Altman and OpenAI's other founders rejected Musk's proposal.
Musk, in turn, walked away from the company and reneged on a massive planned donation, reports Semafor.
Musk told Altman that he believed the "venture had fallen fatally behind Google".
But the Twitter CEO failed to convince OpenAI founders to take over the AI chatbot ChatGPT creator.
When Musk walked away, he resigned from its board in 2018 citing a conflict of interest with his work at Tesla.
According to a Semafor report, he also reneged on a promise to supply $1 billion in funding, contributing only $100 million before he walked.
How non-profit OpenAI became $30 bn profit-making firm, questions Musk
AI tools not far away from being scary, need to get them right: OpenAI CEO
Microsoft may add OpenAI writing technology to Office, other apps
OpenAI to soon monetise ChatGPT platform with a paid professional version
OpenAI launches new tool 'AI Text Classifier' to detect AI-generated text
Apple CEO praises China's innovation, history of cooperation during visit
Microsoft threatens to cut off access to data from rival AI search tools
Gordon Moore, credited for bringing PCs to millions of homes, dies at 94
Amazon, others revamp 'free' shipping as costs soar, says report
Meta Platforms Inc sued by its home county over social media addiction
This left OpenAI with "no ability to pay the astronomical fees associated with training AI models on supercomputers".
In March, 2019, OpenAI announced it was creating a for-profit entity so that it could raise enough money to pay for the compute power.
"We want to increase our ability to raise capital while still serving our mission, and no pre-existing legal structure we know of strikes the right balance," the company wrote at the time.
Less than six months later, Microsoft infused $1 billion in OpenAI, and the rest is history.
They built a supercomputer to train massive models that eventually created ChatGPT and the image generator DALL-E.
The latest language model, GPT-4, has 1 trillion parameters.
Musk has now raised questions over how a non-profit has become a $30 billion maximum-profit company for Satya Nadella-run tech giant.
"I'm still confused as to how a non-profit to which I donated $100 million somehow became a $30 billion market cap for-profit. If this is legal, why doesn't everyone do it?" he quipped.
Musk has also paused OpenAI access to Twitter database.
The AI chatbot ChatGPT is now a rage and Microsoft has infused $10 billion into it to make it more useful for across industries.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)