July 13, 2026, (Inside AI) — OpenAI CEO Sam Altman has openly mocked Elon Musk’s plan to deploy AI data centers in orbit by 2027, escalating a long-running feud between the former collaborators. Altman suggested that SpaceX’s Starmind project—a constellation of 100,000 AI satellites—is a ploy to mislead investors after the company’s recent IPO, which valued it at over $2 trillion.
The clash erupted on X after Musk commented on a new lawsuit from Apple, which accuses OpenAI of stealing intellectual property to develop its own hardware. Musk wrote, "Scam Altman strikes again. He takes scamming to a whole new level... He might literally love scamming more than any human alive!"
Altman shot back: "Homeboy you're the one selling public market investors on short-term space datacenters." Musk replied that Starmind satellites will start launching next year and added, "Maybe you can come see them if your parole officer approves." He then referenced Apple’s suit, saying, "After stealing an open source AI charity, you then stole all of Apple's phone technology! Wow. What do you plan for an encore? That's tough to beat."
From Founding Friends to Bitter Foes
The exchange reignites a feud dating back to 2015, when Altman and Musk co-founded OpenAI as a nonprofit dedicated to ensuring AI "benefits all of humanity." The relationship soured in 2018 when Altman reportedly blocked Musk’s bid to take control. OpenAI later became a for-profit entity, sparking Musk’s 2024 lawsuit alleging betrayal of the founding mission. That case ended earlier this year when a jury found Musk’s claims barred by the statute of limitations.
Now, Apple’s lawsuit, filed Friday, claims OpenAI employees took "secret and confidential information" on unreleased products to build an AI device Altman calls "the greatest technological revolution of our lifetimes." The suit alleges that "at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information."
OpenAI responded: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."
Starmind’s Orbit: Vision or Vapor?
Musk’s Starmind project aims to place AI data centers in low Earth orbit, leveraging solar power and reduced latency for global AI processing. But experts question the feasibility of a 2027 launch. Space-based data centers face extreme thermal swings, radiation, and maintenance challenges. Competitors like Lumen Orbit are also pursuing orbital computing, but none have reached operational scale. Altman’s jab about "short-term space datacenters" highlights skepticism that the project can deliver returns on such a timeline, especially for public market investors.
The spat underscores a deeper rift in the AI industry between terrestrial and space-based infrastructure. While Musk bets on orbiting servers to bypass earthly constraints, Altman focuses on ground-based supercomputers. The outcome could shape the next decade of AI scalability.
Meanwhile, Apple’s suit adds legal pressure on OpenAI as it pushes into consumer hardware. If proven, the allegations could stall Altman’s device ambitions and invite regulatory scrutiny. For now, the war of words between two of tech’s most powerful figures shows no sign of cooling.
