Musk Rejected OpenAI’s ICO Suggestion in 2018
A newly unsealed court filing reveals that Tesla chief Elon Musk rejected an idea from OpenAI CEO Sam Altman to develop a cryptocurrency token at an early juncture in 2018. Musk wrote to express his grave concerns regarding the project, warning that an ICO would cause severe damage to OpenAI’s credibility.
Credibility Concerns Thwart ICO Plans
According to the court record, Altman offered the ICO as a mechanism to raise cash for OpenAI. Musk promptly rejected the proposal, however, calling it a “scamworthy” idea. Musk’s attorneys said Musk felt it “would simply result in a huge loss in credibility for Open AI and anyone associated”. The filing underscored Musk’s feeling the ICO would undermine belief in OpenAI’s mission-and its leadership.
The ICO proposal came at a critical juncture for OpenAI, just months after discussions to shift the organization’s structure from that of a nonprofit to a for-profit entity had surfaced. Musk had founded OpenAI to foster the development of artificial intelligence transparently and collaboratively, making this even more contentious.
For-Profit Shift Sparks Internal Tensions
The executives of OpenAI, including Altman and Greg Brockman, proposed late in 2017 that it move on to being a for-profit entity; this, they argued, would give it additional resources so that it can accelerate its work on AI innovation. Musk insisted, however, that it should remain a nonprofit to avoid compromising integrity and stick to its core mission.
Musk is then said to have issued the following ultimatum: “I will no longer fund OpenAI until you have made a firm commitment to stay [nonprofit], or I’m just being a fool who is essentially providing free funding for a start-up.”
Renewed Legal Battle Highlights Disputes
The whole controversy with the ICO is just one of many rows involving Musk against OpenAI. In February 2024, he sued OpenAI over the grounds of breaching their nonprofit commitments from the beginning. Later that June, it was temporarily dropped before Musk restarted his lawsuit in August against the leadership of OpenAI for accountability.
This has, as a consequence, the reinvestment of attention in the choices Open AI made as an organization has reopened controversies about the need to balance innovation with the twin imperatives of transparency and trust. Musk himself opposed them because he seriously felt that it would contribute to mission drift and a serious risk that financial considerations may override ethical ones.
