Matteo Wong writes:

The rivalry between Sam Altman and Elon Musk is entering its Apprentice era. Both men have the ambition to redefine how the modern world works—and both are jockeying for President Donald Trump’s blessing to accelerate their plans.

Altman’s company, OpenAI, as well as Musk’s ventures—which include SpaceX, Tesla, and xAI—all depend to some degree on federal dollars, permits, and regulatory support. The president could influence whether OpenAI or xAI produces the next major AI breakthrough, whether Musk can succeed in sending a human to Mars, and whether Altman’s big bet on nuclear energy, and fusion reactors in particular, pans out.

Understanding the competition between these two men helps illuminate Trump’s particular style of governing—one defined by patronage and dealmaking. And the rivalry highlights the tech giants’ broader capitulation to the new administration. Executives who have sold a vision of the future defined by ultra-intelligent computer programs, interplanetary travel, and boundless clean energy have bowed to a commander in chief who has already stifled free expression, scientific research, and the mere mention of climate change in government work. Why? Simply because doing so will advance their interests. (And, in some cases, because tech leaders are true believers—ideological adherents to the MAGA worldview.)

Altman’s MAGA turn is best understood as a search for a lifeline. In 2017, as Trump’s first term was just beginning, Altman tweeted, “I think Trump is terrible and few things would make me happier than him not being president.” This time around: “I think he will be incredible for the country in many ways!” In the months before the election, Altman and OpenAI leaned on connections to Trump allies to curry favor, according to The New York Times. In June, two of the start-up’s executives met with Trump in Las Vegas, showcasing their technology and emphasizing its land and energy needs. Meanwhile, OpenAI’s technological lead over xAI, Google, Anthropic, and other firms has dwindled.

The company’s relationship with its main financial backer, Microsoft, has also frayed so much that OpenAI is actively courting other corporate partners. (Microsoft, despite approving OpenAI’s ability to find other data-center partners, maintains that it will remain a key partner going forward.) Over the past year, a number of senior researchers have departed, and the start-up faces several lawsuits and investigations. A new and friendly administration, then, could provide Altman with a much-needed boost to maintain his firm’s shrinking edge in the AI race. (The Atlantic recently entered into a corporate partnership with OpenAI.)

And Musk, for all his criticism of federal bloat, is plenty dependent on the government. Over the past decade, his companies have been awarded at least $18 billion in federal contracts. SpaceX relies heavily on NASA for its rocket business and as of Monday is reportedly testing its Starlink technology to improve the Federal Aviation Administration’s national airspace system, despite an existing $2 billion contract that the FAA has with Verizon. Tesla, with shrinking sales and a relatively stagnant lineup of models, could benefit mightily from friendly regulation of self-driving cars. Musk also appears jealous of Altman’s it-boy reputation in Silicon Valley and beyond: He started xAI within months of ChatGPT’s launch, has taken to calling his rival “Scam Altman,” and recently led an unsolicited $97.4 billion bid for OpenAI (which the start-up’s board refused). “Probably his whole life is from a position of insecurity,” Altman told Bloomberg Television the next day. “I feel for the guy.” [Continue reading…]