In 2018, Elon Musk expressed his opposition to the OpenAI crypto proposal, as he believed that it would undermine the nonprofit’s reputation and mission.
The documents, which were unsealed as part of Musk’s ongoing lawsuit against OpenAI, demonstrate how the billionaire co-founder opposed an initial coin offering that was proposed by the co-founders Sam Altman and Greg Brockman.
Altman and Brockman proposed the token issuance proposition as a remedy to the nonprofit’s severe financial difficulties in early 2018. Musk’s $44 million investment and additional support from Silicon Valley leaders were struggling to secure funding at the time, despite some significant early funding. Above all, OpenAI aimed to develop a secure AGI, but financial constraints loomed.
Musk, who was then the co-chair of OpenAI’s board, categorically dismissed the OpenAI crypto proposal, cautioning that it could damage the nonprofit’s reputation and undermine its mission. He argued that such an action would undermine the public’s confidence in OpenAI’s mission. Musk even considered incorporating OpenAI into Tesla at one point, implying that Tesla resources offered a sustainable funding solution for the company.
Musk departed OpenAI in February 2018, a mere few months after the disagreements, and subsequently established his own AI company, xAI. His departure was a critical turning point for OpenAI, which has since transitioned to a for-profit model.
These court filings occur in the context of deteriorating relationships between Musk and OpenAI. Musk initially filed a lawsuit against OpenAI earlier this year, alleging federal racketeering violations and conspiracy. He subsequently withdrew and re-filed the lawsuit. Microsoft is also named as a defendant in the resurrected legal action, which suggests a more extensive dispute between Musk, OpenAI, and its partnerships.
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