Elon Musk, the billionaire CEO of Tesla and co-founder of OpenAI, reportedly declined a proposal from OpenAI CEO Sam Altman in early 2018 to launch a cryptocurrency token. Musk expressed concerns that such a move could harm the company’s reputation.
Musk’s Concerns About ICO Credibility
According to a recent filing in the United States District Court for the Northern District of California, Musk dismissed the idea of an Initial Coin Offering (ICO), describing it as potentially “scamworthy.” The court document, filed on November 14, highlights Musk’s fear that launching an ICO could damage OpenAI’s credibility.
The filing states, “Musk shot down this idea, stating it would result in a massive loss of credibility for OpenAI and everyone associated with the ICO.”
Transition Talks from Nonprofit to For-Profit
Altman’s proposal for an ICO came shortly after discussions about transitioning OpenAI from a nonprofit organization to a for-profit entity. Musk’s legal team revealed that in September 2017, Altman and Greg Brockman, OpenAI’s current president, introduced the for-profit model, which Musk opposed.
Musk reportedly advised them to either maintain OpenAI as a nonprofit or pursue their separate ventures. In a direct statement to Altman and Brockman, Musk said, “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’s Legal Dispute with OpenAI
The legal conflict between Musk and OpenAI intensified earlier this year. In February, Musk sued the organization, alleging it failed to uphold its nonprofit mission. Although the case was dropped in June, Musk resumed legal action in August, accusing Altman and Brockman of prioritizing personal financial gain over OpenAI’s original mission.
Court filings suggest that after Musk rejected the ICO idea, Altman and Brockman began strategizing to transition OpenAI into a for-profit model to attract funding. Musk’s lawyers described their actions as another “get-rich-quick scheme.”
Separate Legal Matters Resolved
On the same day these allegations were filed, a separate class-action lawsuit involving Musk was resolved. Plaintiffs in a 2022 case accusing Musk of manipulating Dogecoin prices dropped their appeal. Reports indicate the plaintiffs agreed not to pursue further legal actions against Musk or Tesla.
Dogecoin’s Recent Surge
While Musk’s legal issues subside, Dogecoin remains a central focus of his public image. The meme-inspired cryptocurrency saw an 83% surge this week, reaching $0.36, driven by recent political and economic events.
Musk and DOGE’s Political Connection
Musk’s connection to Dogecoin deepened with his appointment as co-leader of the proposed Department of Government Efficiency (DOGE), a part of President-elect Donald Trump’s administration. The initiative, playfully referencing Dogecoin, has brought the cryptocurrency into mainstream political discussions.
DOGE’s Mission to Improve Government Operations
The Department of Government Efficiency aims to provide external advice and collaborate with the White House and the Office of Management and Budget. Its mission is to implement structural reforms and encourage entrepreneurial approaches to federal operations. One key goal is to address inefficiencies in the government’s $6.5 trillion annual spending.
Dogecoin’s playful association with this initiative has propelled it into the spotlight, further solidifying its cultural and economic significance.
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