Tesla CEO and tech entrepreneur Elon Musk rejected OpenAI CEO Sam Altman’s proposal to launch a cryptocurrency in early 2018, warning that it could seriously harm the company’s reputation, according to a recent court document.
“In January 2018, just months after their September 2017 enthusiasm, Altman proposed a scam-like ‘ICO,’ or initial coin offering, in which OpenAI, Inc. would sell its own cryptocurrency,” Musk’s lawyers claimed in a document filed in the U.S. District Court for the Northern District of California on Nov. 14.
“Musk rejected the idea, arguing that ‘it would only lead to a massive loss of trust in OpenAI and all those involved in the ICO,’” the lawyers added.
ICO Proposal Comes Months After Profitable Proposal
Musk's lawyers further explained that the proposal comes just months after they tried to convince Musk — who founded OpenAI with Sam Altman — to transition the company from a nonprofit to a for-profit model.
On August 5, Musk resumed his lawsuit against OpenAI and Altman after appearing to drop the case in June. Musk sued the company in February for allegedly violating its pledge to operate as a nonprofit.
In September 2017, when Altman and current president Greg Brockman proposed the idea of going for profit, Musk reportedly objected, saying “either find another path yourself or continue with OpenAI as a non-profit.”
Musk gives Altman and Brockman an ultimatum
“I will no longer fund OpenAI until you make a firm commitment or I am simply an idiot giving free funding to a startup,” Musk wrote to Altman and Brockman.
The lawyers also allege that just weeks after Musk “blocked a second get-rich-quick scheme,” Altman and Brockman came up with a plan to “convert to a profitable structure.”
“Altman and Brockton have agreed to work together to find a structure for the equity financing,” the lawyers asserted.
The charges were filed in court on the same day that a separate lawsuit against Musk was withdrawn.
A 2022 class action lawsuit filed against Musk and Tesla – alleging that the entrepreneur manipulated the price of Dogecoin through media appearances and social media posts – was withdrawn by the plaintiffs on November 14.
According to TinTucBitcoin, the plaintiffs have agreed to withdraw their appeal from the 2nd Circuit Court of Appeals and not seek any remedies following the ruling from Musk and the car company.
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