Tesla CEO Elon Musk reportedly dismissed OpenAI CEO Sam Altman’s proposal to launch a cryptocurrency token in early 2018, warning that such a move could severely damage the company’s credibility, according to a court filing.
“In January 2018, mere months after their September 2017 ‘enthusias[m],’ Altman proposed a scamworthy ‘ICO,’ or initial coin offering, that would have seen OpenAI, Inc. sell its own cryptocurrency,” Musk’s lawyers stated in a Nov. 14 filing with the U.S. District Court for the Northern District of California.
“Musk shot down this idea too, stating, ‘It would simply result in a massive loss of credibility for OpenAI and everyone associated with the ICO,’” the filing added.
ICO plans followed for-profit discussions
The court filing alleges that the ICO proposal came just months after Altman and current OpenAI president Greg Brockman sought to shift the organization from a nonprofit to a for-profit structure.
Musk’s lawyers noted that in September 2017, Altman and Brockman presented the for-profit idea, to which Musk responded, “Either go do something on your own or continue with OpenAI as a nonprofit.”
Musk reportedly gave them an ultimatum, writing, “I will no longer fund OpenAI until you have made a firm commitment to stay or I’m just being a fool who is essentially providing free funding for a start-up.”
Allegations of further schemes
The filing claims that shortly after Musk opposed the ICO, Altman and Brockman devised a plan to convert OpenAI into a for-profit structure.
“Altman and Brockman agreed among themselves to figure out a structure for an equity fundraise,” Musk’s lawyers argued.
Related lawsuits
On the same day as the filing, a separate class-action lawsuit accusing Musk of manipulating Dogecoin prices was withdrawn by the plaintiffs.
Cointelegraph reported that the plaintiffs chose not to seek further post-judgment relief from Musk or Tesla.
