OpenAI has hired Mike Liberatore, the former finance chief at Elon Musk’s xAI, as its new business finance officer to oversee the company’s growing compute spending.

Liberatore, who left xAI in late July after three months, started his role at OpenAI on Tuesday, a company spokesperson told CNBC. He will report to CFO Sarah Friar and work with Greg Brockman’s team, which manages contracts and capital related to OpenAI’s compute strategy.

Mike Liberatore to Manage OpenAI’s Soaring Infrastructure Costs

Liberatore’s appointment comes as OpenAI’s compute commitments rise rapidly. The company recently finalized a $300 billion deal with Oracle to support its infrastructure needs.

Liberatore’s Role at xAI Included Arranging $10 Billion Financing and Data Center Expansion.

At Elon Musk’s xAI, Liberatore helped arrange $5 billion in debt financing alongside a $5 billion equity raise partly backed by SpaceX. He also approved major data center expansion plans before his departure.

His exit was reported earlier this month by The Wall Street Journal and was among several high-profile departures from Musk’s AI startup.

Musk and Altman’s Rivalry Escalates Amid Legal Disputes

The hire adds to tensions between OpenAI CEO Sam Altman and Elon Musk, who once were close collaborators but are now bitter rivals engaged in legal battles.

Musk sued Altman and OpenAI last year for breach of contract and has attempted to block OpenAI’s efforts to restructure into a for-profit entity.

OpenAI Advances Its For-Profit Transition Despite Musk’s Opposition

OpenAI recently announced that its nonprofit parent will continue overseeing the company and hold an equity stake valued at over $100 billion.

The company, valued at $500 billion, has been steadily increasing its compute investments as part of this commercial growth.

PHOTO: BLOOMBERG/BUSINESS STANDARD

This article was created with AI assistance.