Chiara Bianchi
Tesla CEO Elon Musk alleges that he thwarted OpenAI’s plans for an initial coin offering (ICO) in early 2018, according to an amended legal filing submitted on November 14. Musk asserts that OpenAI founders Sam Altman and Greg Brockman had proposed launching a token to generate profits for the organization.
The filing quotes Musk stating, “An ICO would lead to a severe loss of credibility for OpenAI and everyone involved,” emphasizing his belief that such a move would undermine the organization’s mission.
Originally established as a non-profit with the goal of developing safe artificial general intelligence (AGI), OpenAI aimed to balance technological advancements with ethical considerations. Musk, an early supporter of the venture, joined as co-chair of the board and invested $44 million in the startup. However, Musk’s legal team highlighted his long-standing concerns over the risks posed by advanced AI systems.
In March 2019, OpenAI transitioned to a for-profit model to secure the capital necessary to fund its ambitious goals. During this period, Musk reportedly proposed merging OpenAI with Tesla as a potential solution to its funding challenges. The partnership did not materialize, and Musk departed OpenAI in February 2018, later founding his own AI company, xAI.
Learn: What is Cryptocurrency?
Ongoing Legal Battle and OpenAI’s Response
Musk filed a lawsuit against OpenAI and its leaders, Altman and Brockman, in August 2024. The case includes allegations of fraud, violations of federal RICO laws, and unfair competition. In the updated filing, Microsoft, which invested $1 billion in OpenAI in 2019, was also named as a defendant.
OpenAI responded to the legal battle with a statement expressing disappointment:
“We regret this dispute with someone we deeply admired—who once inspired us to aim higher but later doubted us, started a competitor, and then sued when we made meaningful strides toward our mission without him.”
A Complex Legacy of Collaboration and Competition
Musk’s departure and subsequent lawsuit underscore the tensions between his vision for AI development and OpenAI’s evolving approach. As OpenAI partners with major firms like Microsoft to accelerate progress, Musk’s criticisms highlight the ethical and operational challenges inherent in shaping the future of artificial intelligence.
