Court documents filed on November 14 revealed Elon Musk’s pivotal role in shutting down OpenAI’s cryptocurrency plans in 2018.
Musk Denies OpenAI Cryptocurrency Plan
The documents, released as part of Musk's ongoing lawsuit against OpenAI, show that the billionaire co-founder objected to the initial coin offering proposed by co-founders Sam Altman and Greg Brockman.
The token offering was proposed by Altman and Brockman as a solution to the nonprofit’s dire financial situation in early 2018. At the time, despite some large initial grants, a $44 million investment from Musk, and additional support from Silicon Valley leaders, OpenAI was struggling to secure funding. Ultimately, OpenAI wanted to create a safe AGI, but money was a problem.
Musk, then co-chair of OpenAI’s board, steadfastly rejected OpenAI’s cryptocurrency plans, warning that it could damage the company’s reputation and undermine its nonprofit spirit. He asserted that such a move would undermine trust in OpenAI’s mission. At one point, Musk even considered merging OpenAI with Tesla, suggesting that Tesla’s resources offered a sustainable funding solution for the company.
Lawsuit Revival: Musk Sues OpenAI and Microsoft
Musk left OpenAI in February 2018, just months after those disagreements, to go on to found his own AI company, xAI. His departure marked a significant turning point for OpenAI, which has since transitioned to a for-profit model.
The court filings come amid a deteriorating relationship between Musk and OpenAI. Musk filed a lawsuit against OpenAI earlier this year, alleging conspiracy and violations of federal law, before withdrawing it and then re-filing it. The reinstated lawsuit also includes Microsoft as a defendant, signaling a broader fight involving Musk, OpenAI, and the company’s partnerships.
