Elon Musk rejected OpenAI CEO Sam Altman’s plan for an ICO in early 2018, citing potential harm to the company’s reputation.
Why Elon Musk Rejects OpenAI’s ICO
According to a recent court filing, Tesla CEO and tech entrepreneur Elon Musk rejected OpenAI CEO Sam Altman’s proposal to introduce a cryptocurrency token in early 2018, cautioning that it could significantly damage the company’s reputation.
In a filing with the United States District Court for the Northern District of California on Nov. 14, Musk’s lawyers declared that Altman proposed a scamworthy “ICO,” or initial coin offering, in January 2018, mere months after their September 2017 “enthusias[m].” The ICO would have seen OpenAI, Inc. sell its own cryptocurrency.
“Musk shot down this idea too, stating “it would simply result in a massive loss of credibility for OpenAI and everyone associated with the ICO,” the lawyers added.
Months following the for-profit proposal, plans for an initial coin offering (ICO) were
Musk’s attorneys also clarified that the proposal was made mere months after they had unsuccessfully attempted to persuade Musk, who cofounded OpenAI with Sam Altman, to transition the company from a non-profit to a for-profit model.
After appearing to have withdrawn the case in June, Musk renewed the lawsuit against OpenAI and Altman on Aug. 5. In February, Musk filed a lawsuit against the company for allegedly breaching its commitment to operate as a nonprofit.
In September 2017, when Altman and current president Greg Brockman proposed the for-profit idea, Musk was allegedly against it and said to “either go do something on your own or continue with OpenAI as a nonprofit.”
Musk gives ultimatum to Altman and Brockman
“I will no longer fund OpenAI until you have made a firm commitment to stay or I’m just being a fool who is essentially providing free funding for a start-up,” Musk wrote to Altman and Brockman.
The lawyers further alleged that just weeks after Musk “stopped their second get-rich-quick scheme,” Altman and Brockman devised a plan to “convert to a for-profit structure.”
“Altman and Brockton agreed among themselves to figure out a structure for an equity fundraise,” the lawyers stated.
The allegations were submitted to the court on the same day that a separate court case against Musk was withdrawn.
The plaintiffs withdrew a 2022 class-action lawsuit against Musk and Tesla on November 14, which alleged that the industrialist manipulated the price of Dogecoin through media appearances and social media posts.
The plaintiffs have consented to withdraw their appeal from the Second Circuit Court of Appeals and have agreed not to pursue any post-judgment relief from Musk and the automotive company, according to Cointelegraph.
