OpenAI Recruits Former xAI CFO to Bolster Financial Oversight Amid Leadership Clash
OpenAI has appointed Mike Liberatore, who previously served as chief financial officer at Elon Musk’s AI startup xAI, to the role of business finance officer. Liberatore will be responsible for managing OpenAI’s substantial infrastructure spending, a critical component of the company’s growth strategy.
A company spokesperson confirmed to CNBC that Liberatore, who departed xAI in July after a brief three-month tenure, began his new role at OpenAI on Tuesday. He will report directly to CFO Sarah Friar and collaborate closely with Greg Brockman’s team, which handles contracts and capital allocation related to OpenAI’s compute resources.
Escalating Rivalry Between OpenAI and Musk
The hiring marks another chapter in the intensifying discord between OpenAI CEO Sam Altman and Elon Musk. Once collaborators and co-founders of OpenAI in 2015, the two have become adversaries as OpenAI transitioned from a nonprofit research lab into a fast-growing commercial enterprise, largely backed by Microsoft.
Musk initiated legal action against Altman and OpenAI last year, alleging breach of contract, and has actively opposed the company’s efforts to restructure as a for-profit entity. Last week, OpenAI announced that its nonprofit parent organization would retain oversight and hold an equity stake valued at over $100 billion, signaling a significant shift in its corporate governance.
Expanding Infrastructure and Strategic Finance Leadership
OpenAI, recently valued at approximately $500 billion by investors, continues to ramp up its computational capabilities, exemplified by a $300 billion agreement with Oracle. Liberatore’s expertise in finance and infrastructure will be pivotal as OpenAI scales its operations.
Before joining xAI, Liberatore spent nearly nine years at Airbnb and held senior finance roles at SquareTrade, eBay, and PayPal. During his tenure at xAI, he played a key role in securing $5 billion in debt financing and a $5 billion equity raise, partially funded by SpaceX, alongside approving major data center expansions. His departure was among several notable exits reported at Musk’s AI company.
FinOracleAI — Market View
The recruitment of Mike Liberatore, an experienced CFO with a strong track record in managing large-scale finance operations, positions OpenAI to better control its escalating infrastructure expenditures amid rapid expansion. This move is likely to reassure investors about OpenAI’s financial governance and operational discipline.
However, the ongoing public feud and legal disputes between Altman and Musk introduce reputational and strategic risks that could affect partnerships and market perceptions. Close attention should be paid to how this rivalry evolves and its impact on OpenAI’s restructuring and capital raising efforts.
Impact: positive
