OpenAI hires former xAI CFO amid Altman-Musk rivalry
What's the story
OpenAI has appointed Mike Liberatore, the former Chief Financial Officer (CFO) of Elon Musk's xAI, as its new Business Finance Officer. The move comes as part of OpenAI's strategy to manage its massive infrastructure spending. Liberatore will report to CFO Sarah Friar and work with Greg Brockman's team on contracts and capital for OpenAI's compute strategy.
Career history
Liberatore's experience includes major financing deals at xAI
Liberatore's appointment comes after a brief stint at xAI, where he served for just three months before leaving in July. At xAI, he was instrumental in arranging a $5 billion debt sale and a $5 billion equity raise backed by SpaceX. He also approved major data center expansion plans during his time there.
Financial expertise
Extensive finance background
Before his short stint at xAI, Liberatore had an extensive career in finance. He spent nearly nine years at Airbnb and held senior finance roles at SquareTrade, eBay, and PayPal. His rich experience in managing financial operations will be instrumental for OpenAI as it continues to expand its compute commitments.
Business shift
Feud between Altman and Musk continues
The hiring of Liberatore comes amid an ongoing feud between OpenAI CEO Sam Altman and Musk. The two co-founded OpenAI in 2015 as a nonprofit research lab but have had public disagreements in recent years. Musk sued Altman and OpenAI last year over breach of contract, trying to block the company's transition into a for-profit entity.
Strategic moves
OpenAI's business transition and compute commitments
Despite the ongoing feud, OpenAI has made significant strides in its business transition. It announced that its nonprofit parent would continue to oversee the company and own an equity stake worth over $100 billion. OpenAI, recently valued at $500 billion by investors, has been steadily increasing its compute commitments including a massive $300 billion deal with Oracle.