Elon Musk has a ‘serious conflict of interest’ due to xAI and his relationship with Trump, LinkedIn cofounder says

LinkedIn cofounder Reid Hoffman says Elon Musk shouldn’t use his relationship with Donald Trump to steer US policies that could boost the Tesla CEO’s AI startup, xAI.

LinkedIn cofounder Reid Hoffman said Elon Musk has a “serious conflict of interest” when it comes to guiding a second Trump administration on AI policies in the US.

In an op-ed published Friday with The Financial Times, Hoffman said the advisory role Musk has taken up with Donald Trump could pose a conflict of interest if the xAI founder is guiding the president-elect on laws around artificial intelligence.

“With direct ownership in the fledgling AI start-up xAI, Elon Musk, who is advising Trump in many domains, has a serious conflict of interest in terms of setting federal AI policies for all US companies,” Hoffman wrote. “Using his position to favor xAI in any way, such as awarding it government contracts, encouraging federal agencies to unfairly target AI companies, or imposing new regulations that limit exports will come at the expense of US technological, economic and cultural security and competitiveness.”

Musk did not respond to a request for comment. Hours after the FT published the op-ed, Musk responded to an X post unrelated to Hoffman’s column, criticizing people who post on LinkedIn.

“I instantly lose respect for anyone who posts on LinkedIn,” he said. “Unbearably cringe.”

Hoffman, who is also the cofounder of Inflection AI, shared his hopes and concerns for Trump’s second term in the FT op-ed.

Hoffman credited the Biden Administration for leaving behind a “strong Democrat-engineered economy” and said he was hopeful that Trump could build on it, ushering in more business investments and technological innovations around artificial intelligence.

But he also warned that a Trump White House could stifle innovation by being unwilling to work with US global allies to develop technology such as AI.

“While Trump campaigned on the promise of making America more unilateral and insular, I continue to believe a pluralistic, multilateral approach is what creates innovation and prosperity in an increasingly networked world,” Hoffman said. “That extends to AI. In contrast, I expect the administration will adopt a mercantilist AI policy that will bar long-standing global allies from accessing US models, infrastructure, and technology.”

A spokesperson for Trump’s transition team did not respond to a request for comment.

Hoffman and Musk have a bitter rivalry that dates back to the PayPal days in 2000, when Musk’s online banking company at the time, X.com, merged with Confinity, a security software company, to become PayPal.

The two CEOs have recently been more public about their rivalry, particularly over political disputes. Musk, who has gradually shifted to the Republican Party over the years, has been a vociferous supporter of Trump. Hoffman supported Vice President Kamala Harris’ campaign.

After Trump’s victory on November 5, Musk has already been spending a lot of time in Trump’s orbit and has been tasked to lead a new Department of Government Efficiency focused on reducing the size of the federal government.

Hoffman did not respond to a request for comment.