Elon Musk 'shot down' OpenAI's ICO plan in 2018 over credibility concerns

Tesla CEO and tech entrepreneur Elon Musk dismissed OpenAI CEO Sam Altman’s proposal to launch a cryptocurrency token in early 2018, warning that it could severely harm the reputation of the company, according to a recent court filing.

“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,” Musk’s lawyers declared in a filing with the United States District Court for the Northern District of California on Nov. 14.

ICO plans came months after for-profit proposal

Musk’s lawyers further explained that in January 2018, OpenAI CEO Sam Altman “proposed a scamworthy “ICO,” or initial coin offering, that would have seen OpenAI, Inc. sell its own cryptocurrency,” just months after attempting to convince Musk — who cofounded OpenAI along with Altman — to turn the non-for-profit venture into a for-profit.

On Aug. 5, Musk renewed the lawsuit against OpenAI and Altman after appearing to have dropped the case in June. Musk sued the company in February for allegedly violating promises 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.

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The allegations were submitted to the court on the same day that a separate court case against Musk was withdrawn.

A 2022 class-action lawsuit filed against Musk and Tesla — alleging that the businessman manipulated the price of Dogecoin through media appearances and social media posts — was withdrawn by the plaintiffs on Nov. 14.

Cointelegraph reported that the plaintiffs agreed to withdraw their appeal from the Second Circuit Court of Appeals and not seek any post-judgment relief from Musk and the automotive company.

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