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VCs predict enterprises will spend more on AI in 2026 — through fewer vendors | TechCrunch

VCs predict enterprises will spend more on AI in 2026 — through fewer vendors | TechCrunch

Enterprises have been piloting and testing different AI tools for the past few years to figure out what their adoption strategy will look like. Investors think that period of experimentation is coming to an end.

TechCrunch recently surveyed 24 enterprise-focused VCs and an overwhelming majority predicted enterprises will increase their budgets for AI in 2026 — but not for everything. Most investors said this budget increase will be concentrated, and that many enterprises will spend more funds on fewer contracts.

Andrew Ferguson, a vice president at Databricks Ventures, predicted 2026 will be the year that enterprises start consolidating their investments and picking winners.

“Today, enterprises are testing multiple tools for a single-use case, and there’s an explosion of startups focused on certain buying centers like [go-to-market], where it’s extremely hard to discern differentiation even during [proof of concepts],” Ferguson said. “As enterprises see real proof points from AI, they’ll cut out some of the experimentation budget, rationalize overlapping tools and deploy that savings into the AI technologies that have delivered.”

Rob Biederman, a managing partner at Asymmetric Capital Partners, agreed. He predicts that enterprise companies will not only concentrate their individual spending, the broader enterprise landscape will narrow its overall AI spending to only a handful of vendors across the entire industry.

“Budgets will increase for a narrow set of AI products that clearly deliver results and will decline sharply for everything else,” Biederman said. “We expect a bifurcation where a small number of vendors capture a disproportionate share of enterprise AI budgets while many others see revenue flatten or contract.”

Focused investments

Scott Beechuk, a partner at Norwest Venture Partners, thinks enterprises will increase their spending on the tools that make AI safe for enterprises to use.

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“Enterprises now recognize that the real investment lies in the safeguards and oversight layers that make AI dependable,” Beechuk said. “As these capabilities mature and reduce risk, organizations will feel confident shifting from pilots to scaled deployments, and budgets will increase.”

Harsha Kapre, a director at Snowflake Ventures, predicted enterprises will spend on AI in three distinct areas in 2026: strengthening data foundations, model post-training optimization, and consolidation of tools.

“[Chief investment officers] are actively reducing [software-as-a-service] sprawl and moving toward unified, intelligent systems that lower integration costs and deliver measurable [return on investment],” Kapre said. “AI-enabled solutions are likely going to see the biggest benefit from this shift.”

A shift away from experimentation and towards concentration will affect startups. What’s not clear, is how.

It’s possible that AI startups will reach the same reckoning point that SaaS startups arrived at a few years ago.

The companies operating hard-to-replicate products such as vertical solutions or those built on proprietary data, will likely still be able to grow. Startups with products similar to those offered by large enterprise suppliers like AWS or Salesforce, may start to see pilot projects and funding dry up.

Investors see this possibility too. When asked how they know that an AI startup has a moat, multiple VCs said companies with proprietary data and products that can’t easily be replicated by a tech giant or large language model company are the most defensible.

If investor predictions are true and enterprises do start to concentrate their AI spend next year, 2026 could be the year enterprise budgets increase but many AI startups don’t see a bigger slice of the pie.

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#VCs #predict #enterprises #spend #2026throughfewer #vendors #TechCrunch


Tim Cook is finally stepping down as Apple’s CEO after 15 years at the helm. On Thursday, his recently named successor, John Ternus, made his first earnings call cameo as the incoming CEO and gave a veiled glimpse into what Apple enthusiasts could expect from his tenure.

“We have an incredible roadmap ahead, and while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told investors.

When asked about his advice for Ternus, Cook said to “never forget” that Apple users are “the North Star for the company.”

“We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again,” Cook said on the call. “Our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there is no one on this planet I trust more to lead Apple into the future than John Ternus.”

Ternus’s term as CEO will begin in September. Though the executives are keeping the product roadmap secret for now, a foldable iPhone is expected, and Apple wants Ternus to be the face people associate with it.

In his current role, Ternus leads the company’s hardware engineering efforts. The prospect of having a hardware specialist in charge has excited Apple fans who have been unsatisfied with what they claim is a slowdown of innovation in product releases. Cook has been blamed for this lack of revolutionary changes.

But while he may not have been as innovative as Steve Jobs, Cook oversaw the company’s transition into a trillion-dollar behemoth four times over. On Thursday’s earnings call, Ternus promised to continue Cook’s style of financial leadership.

“One of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision-making of the company, and I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” Ternus told investors (Kevan being Apple CFO Kevan Parekh).

Apple is already promoting Ternus’ hardware engineering prowess as a benefit for the company. On the call, Cook shared that the iPhone 17 family, which was spearheaded by Ternus, is currently the most popular product lineup in Apple’s history.

Products aside, Ternus will also have a lot to answer for on the artificial intelligence side. The tech giant has been taking things slow on AI, while peers like Google and Microsoft soar past with AI innovations. The company has long promised a major leap in AI with an enhanced Siri, but had to push back the release at the very last minute in March 2025. The delay disappointed fans, reportedly caused an internal rift at the company, and even led to federal lawsuits accusing Apple of false advertising. The personalized Siri was expected to arrive early this year, but was reportedly delayed yet again.

In the call, Cook reiterated that the “more personalized Siri” would still be revealed later this year.

#Apples #Incoming #CEO #Earnings #Call #DebutApple,john ternus">Apple’s Incoming CEO Makes His Earnings Call Debut
                Tim Cook is finally stepping down as Apple’s CEO after 15 years at the helm. On Thursday, his recently named successor, John Ternus, made his first earnings call cameo as the incoming CEO and gave a veiled glimpse into what Apple enthusiasts could expect from his tenure.

 “We have an incredible roadmap ahead, and while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told investors. When asked about his advice for Ternus, Cook said to “never forget” that Apple users are “the North Star for the company.” “We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again,” Cook said on the call. “Our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there is no one on this planet I trust more to lead Apple into the future than John Ternus.”

 Ternus’s term as CEO will begin in September. Though the executives are keeping the product roadmap secret for now, a foldable iPhone is expected, and Apple wants Ternus to be the face people associate with it. In his current role, Ternus leads the company’s hardware engineering efforts. The prospect of having a hardware specialist in charge has excited Apple fans who have been unsatisfied with what they claim is a slowdown of innovation in product releases. Cook has been blamed for this lack of revolutionary changes.

 But while he may not have been as innovative as Steve Jobs, Cook oversaw the company’s transition into a trillion-dollar behemoth four times over. On Thursday’s earnings call, Ternus promised to continue Cook’s style of financial leadership. “One of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision-making of the company, and I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” Ternus told investors (Kevan being Apple CFO Kevan Parekh).

 Apple is already promoting Ternus’ hardware engineering prowess as a benefit for the company. On the call, Cook shared that the iPhone 17 family, which was spearheaded by Ternus, is currently the most popular product lineup in Apple’s history. Products aside, Ternus will also have a lot to answer for on the artificial intelligence side. The tech giant has been taking things slow on AI, while peers like Google and Microsoft soar past with AI innovations. The company has long promised a major leap in AI with an enhanced Siri, but had to push back the release at the very last minute in March 2025. The delay disappointed fans, reportedly caused an internal rift at the company, and even led to federal lawsuits accusing Apple of false advertising. The personalized Siri was expected to arrive early this year, but was reportedly delayed yet again.

 In the call, Cook reiterated that the “more personalized Siri” would still be revealed later this year.      #Apples #Incoming #CEO #Earnings #Call #DebutApple,john ternus

John Ternus, made his first earnings call cameo as the incoming CEO and gave a veiled glimpse into what Apple enthusiasts could expect from his tenure.

“We have an incredible roadmap ahead, and while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told investors.

When asked about his advice for Ternus, Cook said to “never forget” that Apple users are “the North Star for the company.”

“We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again,” Cook said on the call. “Our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there is no one on this planet I trust more to lead Apple into the future than John Ternus.”

Ternus’s term as CEO will begin in September. Though the executives are keeping the product roadmap secret for now, a foldable iPhone is expected, and Apple wants Ternus to be the face people associate with it.

In his current role, Ternus leads the company’s hardware engineering efforts. The prospect of having a hardware specialist in charge has excited Apple fans who have been unsatisfied with what they claim is a slowdown of innovation in product releases. Cook has been blamed for this lack of revolutionary changes.

But while he may not have been as innovative as Steve Jobs, Cook oversaw the company’s transition into a trillion-dollar behemoth four times over. On Thursday’s earnings call, Ternus promised to continue Cook’s style of financial leadership.

“One of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision-making of the company, and I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” Ternus told investors (Kevan being Apple CFO Kevan Parekh).

Apple is already promoting Ternus’ hardware engineering prowess as a benefit for the company. On the call, Cook shared that the iPhone 17 family, which was spearheaded by Ternus, is currently the most popular product lineup in Apple’s history.

Products aside, Ternus will also have a lot to answer for on the artificial intelligence side. The tech giant has been taking things slow on AI, while peers like Google and Microsoft soar past with AI innovations. The company has long promised a major leap in AI with an enhanced Siri, but had to push back the release at the very last minute in March 2025. The delay disappointed fans, reportedly caused an internal rift at the company, and even led to federal lawsuits accusing Apple of false advertising. The personalized Siri was expected to arrive early this year, but was reportedly delayed yet again.

In the call, Cook reiterated that the “more personalized Siri” would still be revealed later this year.

#Apples #Incoming #CEO #Earnings #Call #DebutApple,john ternus">Apple’s Incoming CEO Makes His Earnings Call DebutApple’s Incoming CEO Makes His Earnings Call Debut
                Tim Cook is finally stepping down as Apple’s CEO after 15 years at the helm. On Thursday, his recently named successor, John Ternus, made his first earnings call cameo as the incoming CEO and gave a veiled glimpse into what Apple enthusiasts could expect from his tenure.

 “We have an incredible roadmap ahead, and while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told investors. When asked about his advice for Ternus, Cook said to “never forget” that Apple users are “the North Star for the company.” “We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again,” Cook said on the call. “Our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there is no one on this planet I trust more to lead Apple into the future than John Ternus.”

 Ternus’s term as CEO will begin in September. Though the executives are keeping the product roadmap secret for now, a foldable iPhone is expected, and Apple wants Ternus to be the face people associate with it. In his current role, Ternus leads the company’s hardware engineering efforts. The prospect of having a hardware specialist in charge has excited Apple fans who have been unsatisfied with what they claim is a slowdown of innovation in product releases. Cook has been blamed for this lack of revolutionary changes.

 But while he may not have been as innovative as Steve Jobs, Cook oversaw the company’s transition into a trillion-dollar behemoth four times over. On Thursday’s earnings call, Ternus promised to continue Cook’s style of financial leadership. “One of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision-making of the company, and I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” Ternus told investors (Kevan being Apple CFO Kevan Parekh).

 Apple is already promoting Ternus’ hardware engineering prowess as a benefit for the company. On the call, Cook shared that the iPhone 17 family, which was spearheaded by Ternus, is currently the most popular product lineup in Apple’s history. Products aside, Ternus will also have a lot to answer for on the artificial intelligence side. The tech giant has been taking things slow on AI, while peers like Google and Microsoft soar past with AI innovations. The company has long promised a major leap in AI with an enhanced Siri, but had to push back the release at the very last minute in March 2025. The delay disappointed fans, reportedly caused an internal rift at the company, and even led to federal lawsuits accusing Apple of false advertising. The personalized Siri was expected to arrive early this year, but was reportedly delayed yet again.

 In the call, Cook reiterated that the “more personalized Siri” would still be revealed later this year.      #Apples #Incoming #CEO #Earnings #Call #DebutApple,john ternus

Tim Cook is finally stepping down as Apple’s CEO after 15 years at the helm. On Thursday, his recently named successor, John Ternus, made his first earnings call cameo as the incoming CEO and gave a veiled glimpse into what Apple enthusiasts could expect from his tenure.

“We have an incredible roadmap ahead, and while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told investors.

When asked about his advice for Ternus, Cook said to “never forget” that Apple users are “the North Star for the company.”

“We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again,” Cook said on the call. “Our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there is no one on this planet I trust more to lead Apple into the future than John Ternus.”

Ternus’s term as CEO will begin in September. Though the executives are keeping the product roadmap secret for now, a foldable iPhone is expected, and Apple wants Ternus to be the face people associate with it.

In his current role, Ternus leads the company’s hardware engineering efforts. The prospect of having a hardware specialist in charge has excited Apple fans who have been unsatisfied with what they claim is a slowdown of innovation in product releases. Cook has been blamed for this lack of revolutionary changes.

But while he may not have been as innovative as Steve Jobs, Cook oversaw the company’s transition into a trillion-dollar behemoth four times over. On Thursday’s earnings call, Ternus promised to continue Cook’s style of financial leadership.

“One of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision-making of the company, and I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” Ternus told investors (Kevan being Apple CFO Kevan Parekh).

Apple is already promoting Ternus’ hardware engineering prowess as a benefit for the company. On the call, Cook shared that the iPhone 17 family, which was spearheaded by Ternus, is currently the most popular product lineup in Apple’s history.

Products aside, Ternus will also have a lot to answer for on the artificial intelligence side. The tech giant has been taking things slow on AI, while peers like Google and Microsoft soar past with AI innovations. The company has long promised a major leap in AI with an enhanced Siri, but had to push back the release at the very last minute in March 2025. The delay disappointed fans, reportedly caused an internal rift at the company, and even led to federal lawsuits accusing Apple of false advertising. The personalized Siri was expected to arrive early this year, but was reportedly delayed yet again.

In the call, Cook reiterated that the “more personalized Siri” would still be revealed later this year.

#Apples #Incoming #CEO #Earnings #Call #DebutApple,john ternus

As the first week of trial in Musk v. Altman comes to a close, one person has emerged as a critical behind-the-scenes manager of communications and egos in OpenAI’s early years: Shivon Zilis.

A longtime employee of Musk and the mother to four of his children, Zilis joined OpenAI as an adviser in 2016. She later served as a director of its nonprofit board from 2020 until 2023 and has worked as an executive at Musk’s other companies, Neuralink and Tesla.

When asked about the nature of his relationship with Zilis in court, Musk offered several answers. At one point, he called her a “chief of staff.” Later, a “close adviser.” At another point, he said “we live together, and she’s the mother of four of my children,” though Zilis said in a deposition that Musk is more of a regular guest and maintains his own residence. Last September, Zilis told OpenAI’s attorneys that she became romantic with Musk around 2016 after she had become an informal adviser to OpenAI. They had their first two children in 2021, she said.

But OpenAI’s lawyers have made the case in witness testimonies and evidence that her most important role, as it pertains to this lawsuit, is being a covert liaison between OpenAI and Musk, even years after he left the nonprofit’s board in February 2018.

“Do you prefer I stay close and friendly to OpenAI to keep info flowing or begin to disassociate? Trust game is about to get tricky so any guidance for how to do right by you is appreciated,” Zilis wrote in a text message to Musk on February 16, 2018, days before OpenAI announced he was leaving the board. Musk responded, “Close and friendly, but we are going to actively try to move three or four people from OpenAI to Tesla. More than that will join over time, but we won’t actively recruit them.”

When asked about this exchange on the witness stand, Musk said he “wanted to know what’s going on.”

In the same text thread, Musk wrote, “There is little chance of OpenAI being a serious force if I focus on Tesla AI.” Zilis reaffirmed him, saying: “There is very low probability of a good future if someone doesn’t slow Demis down,” referring to Demis Hassabis, the leader of Google DeepMind, who Musk has said he didn’t trust to control a superintelligent AI system. “You don’t realize how much you have an ability to influence him directly or otherwise slow him down. I think you know I’m not a malicious person, but in this case it feels fundamentally irresponsible to not find a way to slow or alter his path.”

Roughly two months later, in an email from April 23, 2018, Zilis updated Musk on OpenAI’s fundraising efforts and progress on a project to develop an AI that could play video games. In the same message, she said she had reallocated most of her time away from OpenAI to his other companies, Neuralink and Tesla, but told him, “If you’d prefer I pull more hours back to OpenAI oversight please let me know.”

Almost a year earlier, in the summer of 2017, OpenAI’s cofounders had started negotiating changes to the organization’s corporate structure—Musk wanted control of the company to start out. In an email from August 28, 2017, Zilis wrote to Musk that she had met with OpenAI president Greg Brockman and cofounder Ilya Sutskever to discuss how equity would be divided up in the new company. She summarized points from the meeting, including that Brockman and Sutskever thought one person shouldn’t have unilateral power over AGI, should they develop it. Musk wrote back to Zilis, “This is very annoying. Please encourage them to go start a company. I’ve had enough.”

#Shivon #Zilis #Operated #Elon #Musks #OpenAI #Insidermodel behavior,artificial intelligence,openai,elon musk,sam altman,neuralink,musk v. altman trial">How Shivon Zilis Operated as Elon Musk’s OpenAI InsiderAs the first week of trial in Musk v. Altman comes to a close, one person has emerged as a critical behind-the-scenes manager of communications and egos in OpenAI’s early years: Shivon Zilis.A longtime employee of Musk and the mother to four of his children, Zilis joined OpenAI as an adviser in 2016. She later served as a director of its nonprofit board from 2020 until 2023 and has worked as an executive at Musk’s other companies, Neuralink and Tesla.When asked about the nature of his relationship with Zilis in court, Musk offered several answers. At one point, he called her a “chief of staff.” Later, a “close adviser.” At another point, he said “we live together, and she’s the mother of four of my children,” though Zilis said in a deposition that Musk is more of a regular guest and maintains his own residence. Last September, Zilis told OpenAI’s attorneys that she became romantic with Musk around 2016 after she had become an informal adviser to OpenAI. They had their first two children in 2021, she said.But OpenAI’s lawyers have made the case in witness testimonies and evidence that her most important role, as it pertains to this lawsuit, is being a covert liaison between OpenAI and Musk, even years after he left the nonprofit’s board in February 2018.“Do you prefer I stay close and friendly to OpenAI to keep info flowing or begin to disassociate? Trust game is about to get tricky so any guidance for how to do right by you is appreciated,” Zilis wrote in a text message to Musk on February 16, 2018, days before OpenAI announced he was leaving the board. Musk responded, “Close and friendly, but we are going to actively try to move three or four people from OpenAI to Tesla. More than that will join over time, but we won’t actively recruit them.”When asked about this exchange on the witness stand, Musk said he “wanted to know what’s going on.”In the same text thread, Musk wrote, “There is little chance of OpenAI being a serious force if I focus on Tesla AI.” Zilis reaffirmed him, saying: “There is very low probability of a good future if someone doesn’t slow Demis down,” referring to Demis Hassabis, the leader of Google DeepMind, who Musk has said he didn’t trust to control a superintelligent AI system. “You don’t realize how much you have an ability to influence him directly or otherwise slow him down. I think you know I’m not a malicious person, but in this case it feels fundamentally irresponsible to not find a way to slow or alter his path.”Roughly two months later, in an email from April 23, 2018, Zilis updated Musk on OpenAI’s fundraising efforts and progress on a project to develop an AI that could play video games. In the same message, she said she had reallocated most of her time away from OpenAI to his other companies, Neuralink and Tesla, but told him, “If you’d prefer I pull more hours back to OpenAI oversight please let me know.”Almost a year earlier, in the summer of 2017, OpenAI’s cofounders had started negotiating changes to the organization’s corporate structure—Musk wanted control of the company to start out. In an email from August 28, 2017, Zilis wrote to Musk that she had met with OpenAI president Greg Brockman and cofounder Ilya Sutskever to discuss how equity would be divided up in the new company. She summarized points from the meeting, including that Brockman and Sutskever thought one person shouldn’t have unilateral power over AGI, should they develop it. Musk wrote back to Zilis, “This is very annoying. Please encourage them to go start a company. I’ve had enough.”#Shivon #Zilis #Operated #Elon #Musks #OpenAI #Insidermodel behavior,artificial intelligence,openai,elon musk,sam altman,neuralink,musk v. altman trial

trial in Musk v. Altman comes to a close, one person has emerged as a critical behind-the-scenes manager of communications and egos in OpenAI’s early years: Shivon Zilis.

A longtime employee of Musk and the mother to four of his children, Zilis joined OpenAI as an adviser in 2016. She later served as a director of its nonprofit board from 2020 until 2023 and has worked as an executive at Musk’s other companies, Neuralink and Tesla.

When asked about the nature of his relationship with Zilis in court, Musk offered several answers. At one point, he called her a “chief of staff.” Later, a “close adviser.” At another point, he said “we live together, and she’s the mother of four of my children,” though Zilis said in a deposition that Musk is more of a regular guest and maintains his own residence. Last September, Zilis told OpenAI’s attorneys that she became romantic with Musk around 2016 after she had become an informal adviser to OpenAI. They had their first two children in 2021, she said.

But OpenAI’s lawyers have made the case in witness testimonies and evidence that her most important role, as it pertains to this lawsuit, is being a covert liaison between OpenAI and Musk, even years after he left the nonprofit’s board in February 2018.

“Do you prefer I stay close and friendly to OpenAI to keep info flowing or begin to disassociate? Trust game is about to get tricky so any guidance for how to do right by you is appreciated,” Zilis wrote in a text message to Musk on February 16, 2018, days before OpenAI announced he was leaving the board. Musk responded, “Close and friendly, but we are going to actively try to move three or four people from OpenAI to Tesla. More than that will join over time, but we won’t actively recruit them.”

When asked about this exchange on the witness stand, Musk said he “wanted to know what’s going on.”

In the same text thread, Musk wrote, “There is little chance of OpenAI being a serious force if I focus on Tesla AI.” Zilis reaffirmed him, saying: “There is very low probability of a good future if someone doesn’t slow Demis down,” referring to Demis Hassabis, the leader of Google DeepMind, who Musk has said he didn’t trust to control a superintelligent AI system. “You don’t realize how much you have an ability to influence him directly or otherwise slow him down. I think you know I’m not a malicious person, but in this case it feels fundamentally irresponsible to not find a way to slow or alter his path.”

Roughly two months later, in an email from April 23, 2018, Zilis updated Musk on OpenAI’s fundraising efforts and progress on a project to develop an AI that could play video games. In the same message, she said she had reallocated most of her time away from OpenAI to his other companies, Neuralink and Tesla, but told him, “If you’d prefer I pull more hours back to OpenAI oversight please let me know.”

Almost a year earlier, in the summer of 2017, OpenAI’s cofounders had started negotiating changes to the organization’s corporate structure—Musk wanted control of the company to start out. In an email from August 28, 2017, Zilis wrote to Musk that she had met with OpenAI president Greg Brockman and cofounder Ilya Sutskever to discuss how equity would be divided up in the new company. She summarized points from the meeting, including that Brockman and Sutskever thought one person shouldn’t have unilateral power over AGI, should they develop it. Musk wrote back to Zilis, “This is very annoying. Please encourage them to go start a company. I’ve had enough.”

#Shivon #Zilis #Operated #Elon #Musks #OpenAI #Insidermodel behavior,artificial intelligence,openai,elon musk,sam altman,neuralink,musk v. altman trial">How Shivon Zilis Operated as Elon Musk’s OpenAI Insider

As the first week of trial in Musk v. Altman comes to a close, one person has emerged as a critical behind-the-scenes manager of communications and egos in OpenAI’s early years: Shivon Zilis.

A longtime employee of Musk and the mother to four of his children, Zilis joined OpenAI as an adviser in 2016. She later served as a director of its nonprofit board from 2020 until 2023 and has worked as an executive at Musk’s other companies, Neuralink and Tesla.

When asked about the nature of his relationship with Zilis in court, Musk offered several answers. At one point, he called her a “chief of staff.” Later, a “close adviser.” At another point, he said “we live together, and she’s the mother of four of my children,” though Zilis said in a deposition that Musk is more of a regular guest and maintains his own residence. Last September, Zilis told OpenAI’s attorneys that she became romantic with Musk around 2016 after she had become an informal adviser to OpenAI. They had their first two children in 2021, she said.

But OpenAI’s lawyers have made the case in witness testimonies and evidence that her most important role, as it pertains to this lawsuit, is being a covert liaison between OpenAI and Musk, even years after he left the nonprofit’s board in February 2018.

“Do you prefer I stay close and friendly to OpenAI to keep info flowing or begin to disassociate? Trust game is about to get tricky so any guidance for how to do right by you is appreciated,” Zilis wrote in a text message to Musk on February 16, 2018, days before OpenAI announced he was leaving the board. Musk responded, “Close and friendly, but we are going to actively try to move three or four people from OpenAI to Tesla. More than that will join over time, but we won’t actively recruit them.”

When asked about this exchange on the witness stand, Musk said he “wanted to know what’s going on.”

In the same text thread, Musk wrote, “There is little chance of OpenAI being a serious force if I focus on Tesla AI.” Zilis reaffirmed him, saying: “There is very low probability of a good future if someone doesn’t slow Demis down,” referring to Demis Hassabis, the leader of Google DeepMind, who Musk has said he didn’t trust to control a superintelligent AI system. “You don’t realize how much you have an ability to influence him directly or otherwise slow him down. I think you know I’m not a malicious person, but in this case it feels fundamentally irresponsible to not find a way to slow or alter his path.”

Roughly two months later, in an email from April 23, 2018, Zilis updated Musk on OpenAI’s fundraising efforts and progress on a project to develop an AI that could play video games. In the same message, she said she had reallocated most of her time away from OpenAI to his other companies, Neuralink and Tesla, but told him, “If you’d prefer I pull more hours back to OpenAI oversight please let me know.”

Almost a year earlier, in the summer of 2017, OpenAI’s cofounders had started negotiating changes to the organization’s corporate structure—Musk wanted control of the company to start out. In an email from August 28, 2017, Zilis wrote to Musk that she had met with OpenAI president Greg Brockman and cofounder Ilya Sutskever to discuss how equity would be divided up in the new company. She summarized points from the meeting, including that Brockman and Sutskever thought one person shouldn’t have unilateral power over AGI, should they develop it. Musk wrote back to Zilis, “This is very annoying. Please encourage them to go start a company. I’ve had enough.”

#Shivon #Zilis #Operated #Elon #Musks #OpenAI #Insidermodel behavior,artificial intelligence,openai,elon musk,sam altman,neuralink,musk v. altman trial

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