Elon Musk rejected OpenAI’s 2018 plan to launch a cryptocurrency because he feared it would hurt the company’s reputation.

In 2018, Elon Musk rejected a proposal from Sam Altman, the CEO of OpenAI, to launch a cryptocurrency for the company. Musk believed this would seriously harm OpenAI’s reputation. This information comes from a recent court filing, which reveals Musk’s concerns about the company’s direction and his increasing frustration with its leadership.

The Proposal and Musk’s Reaction

The court filing shows that OpenAI’s plan to launch a cryptocurrency was presented to Musk in early 2018, just a few months after the company had talked about changing from a non-profit to a for-profit organization. Sam Altman and Greg Brockman, the president of OpenAI, proposed creating a cryptocurrency to raise money for the company, similar to other popular blockchain projects at that time.

However, Elon Musk quickly rejected the idea, saying he was worried it could hurt OpenAI’s reputation. Musk’s lawyers, in their court filing, stated that Musk believed the ICO would be “scamworthy” and would result in a “massive loss of credibility for OpenAI.” Musk, who had co-founded the company with Altman, had high standards for its mission, which was to ensure artificial intelligence (AI) would be developed safely and transparently.

Musk’s warning came when OpenAI was still a non-profit, focused on using AI to help humanity. For Musk the ICO idea went against this mission and could harm the company’s reputation and credibility in the tech and research world.

OpenAI’s Shift from Non-Profit to For-Profit

The OpenAI ICO proposal came only months after Altman and Brockman had suggested transitioning OpenAI from a non-profit to a for-profit model. In August 2017, OpenAI’s leadership tried to convince Musk to support the move, claiming that it would allow the company to attract more funding and accelerate its progress in AI research. Musk, however, was not on board with this idea and pushed back hard.

Musk’s response, according to the court filing, was clear: he told Altman and Brockman to either keep OpenAI as a non-profit or start a new project. He also made it clear that he would stop funding OpenAI if they switched to a for-profit model, saying he didn’t want to support a company that might leave its original mission behind.

This disagreement started a split between Musk and OpenAI. Soon after the ICO plan was rejected, Altman and Brockman reportedly began talking about how to raise money by selling company shares, which increased Musk’s concerns about their changing focus.

Elon Musk’s dissatisfaction with OpenAI’s changing direction eventually led to a legal dispute between him and the company. In 2022, Musk filed a lawsuit accusing OpenAI of violating its original non-profit promise and of engaging in actions that undermined its founding mission. Musk argued that OpenAI’s transformation into a for-profit entity was inconsistent with the commitments made when the company was first established.

Musk’s court filing about the OpenAI ICO proposal is just one part of his ongoing legal fight. He is trying to hold OpenAI accountable for changing its strategy, which he believes goes against its mission to develop AI for the public good, not for profit. Musk has also expressed concerns that OpenAI is becoming too focused on corporate interests, especially after partnering with Microsoft.

Musk’s Broader Vision for AI

Musk’s rejection of OpenAI ICO proposal and his legal actions show his larger view on artificial intelligence. He has always supported responsible AI development, warning about the risks of AI if it’s not properly regulated. Musk stresses the need for AI development to be transparent, ethical, and focused on benefiting the public.

While Musk’s relationship with OpenAI has become more tense over the years, his concerns about its direction come from wanting to make sure AI stays aligned with human values and safety. Musk believes that making a profit should not interfere with transparency and accountability in AI research and development.

Conclusion: Elon Musk Rejected OpenAI ICO Proposal

Elon Musk’s rejection of the OpenAI ICO proposal in 2018 serves as a pivotal moment in the history of the company. His concerns about the potential harm to OpenAI’s credibility were rooted in a desire to protect the company’s original mission and ensure that AI development remained focused on the public good. As Musk’s legal battle with OpenAI continues, the clash over the company’s evolving strategy highlights the broader tensions within the tech world between profit-driven motives and ethical considerations in emerging technologies like AI.