Tesla CEO Elon Musk alleges that OpenAI disrupted his initial coin offering (ICO) plans in 2018, according to a redacted court filing filed Nov. 14.
The filing reveals that OpenAI's founders considered launching a cryptocurrency to fund the company but faced opposition from Musk, who was a board member at the time.
The court filing states that OpenAI co-founders Sam Altman and Greg Brockman proposed an ICO to raise funds for the nonprofit in early 2018. Musk reportedly opposed the idea, stating that such a move would “result in a major loss of credibility for OpenAI and everyone associated with the ICO.”
At the time, OpenAI was a nonprofit organization dedicated to developing safe artificial general intelligence (AGI). Musk’s legal team cited his longstanding concerns about the existential risks posed by advanced AI systems as motivating his initial involvement in OpenAI as co-chairman of the board and a $44 million investment.
In 2019, OpenAI transitioned to a for-profit model, citing the need to raise significant capital to fulfill its mission. Musk even proposed merging OpenAI with Tesla to overcome its financial difficulties, but the idea did not materialize. Musk left OpenAI's board in February 2018, citing disagreements over the direction of the company.
OpenAI finally launched its Worldcoin (WLD) altcoin in 2023, five years after its abandoned ICO offering.
Musk filed a lawsuit against OpenAI, its executives Sam Altman and Greg Brockman, and key partner Microsoft in August 2024. The lawsuit accuses them of fraud, unfair competition, and violating federal racketeering (RICO) laws. Microsoft, which invested $1 billion in OpenAI in 2019, is named as a defendant in the amended complaint.
OpenAI responded to Musk’s legal action with a public statement, expressing its disappointment:
“We are saddened that it has come to this with someone we deeply admire, someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we were making meaningful progress toward OpenAI’s mission without him.”
After leaving OpenAI, Musk signaled his continued interest in developing advanced AI systems by founding his own AI startup, xAI, in 2023.
*This is not investment advice.
