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Elon Musk

Tesla CEO and tech entrepreneur Elon Musk dismissed OpenAI CEO Sam Altman’s proposal to launch a cryptocurrency token in early 2018, warning that it could severely harm the reputation of the company, according to a recent 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 declared in a <a data-ct-non-breakable="null" href="https://storage.courtlistener.com/recap/gov.uscourts.cand.433688/gov.uscourts.cand.433688.32.0_1.pdf" rel="null" target="null" text="null" title="https://storage.courtlistener.com/recap/gov.uscourts.cand.433688/gov.uscourts.cand.433688.32.0_1.pdf">filing</a> with the United States District Court for the Northern District of California on Nov. 14.
“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 lawyers added.
<h2 id="ico-plans-came-months-after-for-profit-proposal">ICO plans came months after for-profit proposal</h2>
<a data-ct-non-breakable="null" href="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2022/elon-musk" rel="" target="_self" text="null" title="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2022/elon-musk">Musk’s</a> lawyers further explained that the proposal came just months after attempting to convince Musk — who cofounded OpenAI along with <a data-ct-non-breakable="null" href="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2022/elon-musk" rel="" target="_self" text="null" title="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2022/elon-musk">Sam Altman</a> — to shift the firm from a nonprofit to a for-profit model.
On Aug. 5, Musk renewed the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/elon-musk-renews-lawsuit-openai-sam-altman-filing" rel="null" target="null" text="null" title="https://cointelegraph.com/news/elon-musk-renews-lawsuit-openai-sam-altman-filing">lawsuit against OpenAI and Altman</a> after appearing to have dropped the case in June. Musk sued the company in February for allegedly violating promises to operate as a nonprofit.
In September 2017, when Altman and current president Greg Brockman proposed the for-profit idea, Musk was allegedly against it and said to “either go do something on your own or continue with OpenAI as a nonprofit.”
<h2 id="musk-gives-ultimatum-to-altman-and-brockman">Musk gives ultimatum to Altman and Brockman</h2>
“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,” Musk wrote to Altman and Brockman.
The lawyers further alleged that just weeks after Musk “stopped their second get-rich-quick scheme,” Altman and Brockman devised a plan to “convert to a for-profit structure.”
“Altman and Brockton agreed among themselves to figure out a structure for an equity fundraise,” the lawyers stated.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/elon-musk-government-efficiency-defer-capital-gains-tax" rel="null" target="null" text="null" title="null">US gov’t job could allow Elon Musk to defer capital gains tax</a>
The allegations were submitted to the court on the same day that a separate court case against Musk was withdrawn.
A 2022 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/dogecoin-investor-lawsuit-against-elon-musk-dropped" rel="null" target="null" text="null" title="null">class-action lawsuit filed against Musk and Tesla</a> — alleging that the businessman manipulated the price of Dogecoin through media appearances and social media posts — was withdrawn by the plaintiffs on Nov. 14.
Cointelegraph reported that the plaintiffs agreed to withdraw their appeal from the Second Circuit Court of Appeals and not seek any post-judgment relief from Musk and the automotive company.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/fbi-tokens-ai-crypto-wash-trades-is-it-legal/" rel="null" target="null" text="null" title="null">Legal issues surround the FBI’s creation of fake crypto tokens</a>

Elon Musk 'shot down’ OpenAI’s ICO plan in 2018 over credibility concerns

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