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Elon Musk, the billionaire CEO of Tesla and co-founder of OpenAI, reportedly turned down a suggestion from OpenAI CEO Sam Altman to introduce a cryptocurrency token in early 2018, cautioning that it could damage the company’s reputation.
As per a recent filing in the United States District Court for the Northern District of California, Musk dismissed the concept of an Initial Coin Offering (ICO), labeling it a potentially “scamworthy” action.
Musk Expressed Concerns Regarding ICO’s Impact on Credibility
The court document, submitted on November 14, outlines Musk’s apprehensions about the harm such an action could inflict on OpenAI’s credibility.
“Musk rejected this notion, asserting it would lead to a significant loss of credibility for OpenAI and all individuals involved with the ICO,” the filing states.
This suggestion from Altman emerged just months after discussions about shifting OpenAI from its initial nonprofit structure to a for-profit organization.
Musk’s legal representatives indicated that in September 2017, Altman and Greg Brockman, the current president of OpenAI, first proposed the for-profit concept, which Musk opposed.
He allegedly cautioned them to either continue as a nonprofit or pursue independent ventures.
In a message to Altman and Brockman, Musk stated, “I will no longer finance OpenAI until you have made a definitive commitment to remain, or I’m merely being a fool who is essentially providing free funding for a start-up.”
The legal conflict between Musk and OpenAI intensified earlier this year.
In February, Musk filed a lawsuit against the organization for purportedly violating its commitment to stay a nonprofit.
Although the case seemed to be dismissed in June, Musk reinitiated legal proceedings in August, further accusing Altman and Brockman of seeking personal financial benefits at the cost of OpenAI’s mission.
The court filing also claims that after Musk rejected the ICO proposal, Altman and Brockman began formulating a strategy to transition OpenAI to a for-profit model to obtain funding.
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Musk’s attorneys characterized this as yet another “get-rich-quick scheme” by the two executives.
On the same day the allegations were filed, a different legal issue involving Musk was settled.
Plaintiffs in a 2022 class-action lawsuit alleging Musk of manipulating Dogecoin prices withdrew their appeal.
Reports indicate that the plaintiffs agreed not to pursue any further legal actions against Musk or Tesla.
Dogecoin Reaches New Heights
As the legal dispute diminishes, Dogecoin continues to be a significant aspect of Musk’s public image.
The price of the meme coin surged this week, increasing over 83% to $0.36, driven by recent political and economic events.
Musk’s association with Dogecoin has escalated with his appointment to co-lead the proposed Department of Government Efficiency (D.O.G.E.), part of President-elect Donald Trump’s administration.
This initiative, perceived as a reference to Dogecoin’s playful acronym, has propelled the cryptocurrency into mainstream political discussions.
The newly established DOGE will provide external advice and guidance to the U.S. government while working alongside the White House and Office of Management and Budget.
Its objectives include implementing structural reforms and promoting an entrepreneurial approach to government operations.
One of DOGE’s primary responsibilities is to tackle inefficiencies in the federal government’s $6.5 trillion annual expenditure.
The post Elon Musk vs. OpenAI – The ICO Credibility Conundrum appeared first on Cryptonews.
