Elon Musk blocked OpenAI’s ICO idea because ‘crypto damages credibility’
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Elon Musk killed OpenAI’s plan to launch an initial coin offering (ICO) in 2018. The billionaire said it would destroy the company’s reputation, according to court filings submitted on Nov. 14. Elon’s decision blocked co-founders Sam Altman and Greg Brockman, who wanted to sell tokens to raise funds for the nonprofit AI startup. “It would simply result in a massive loss of credibility for OpenAI and everyone associated with the ICO,” he said in the filing. The revelation exposes deeper tensions between Elon and OpenAI, a company he helped co-found in 2015. At its start, OpenAI was supposed to create artificial general intelligence (AGI) that would benefit humanity without compromising safety. Elon was all in, investing $44 million and joining as co-chair of the board. But by 2018, the cracks were already showing. Disagreements over strategy, funding, and control would soon push Elon out and set OpenAI on a different path. Elon’s rejection of crypto In early 2018, OpenAI was strapped for cash. Altman and Brockman pitched the idea of launching a token to generate revenue. ICOs were booming then, with companies raising billions through token sales. OpenAI saw an opportunity, but Elon wasn’t having it. He thought attaching OpenAI’s name to a token would damage its credibility. The billionaire, well-known for his skepticism about crypto, believed that associating with a trend often linked to scams and speculation was a terrible idea. The court filings also show Elon suggested merging OpenAI with Tesla to address its financial struggles. His vision was to align OpenAI’s AI research with Tesla’s work on self-driving cars. But the board didn’t bite. By February 2018, Elon resigned from OpenAI’s board. He also withdrew a significant planned donation to the organization, further widening the gap between him and his former colleagues. OpenAI’s pivot after Elon’s exit…
Filed under: News - @ November 15, 2024 8:20 pm