Elon Musk prevented ChatGPT developer from creating his own cryptocurrency

Elon Musk rejected the idea of creating a crypto token for OpenAI in 2018 due to fears that it would damage the company’s reputation, Cryptopolitian reports. The situation became known from updated court documents, which revealed the details of OpenAI founder Sam Altman’s proposal to launch the token through an ICO (initial coin offering — ed.). Musk called the initiative «fraudulent» and said that it would lead to a loss of trust in the organization.

Altman’s proposal came amid his attempts to persuade Musk to change the company’s status from non-profit to commercial. Musk rejected this idea, emphasizing that either OpenAI should be run as a non-profit organization or look for other projects.

In August 2023, Musk renewed his lawsuit against OpenAI, accusing the startup of breaching the underlying agreement and prioritizing commercial interests over the public good. It stated that it would stop funding OpenAI unless the company committed to remain non-profit.

After that, OpenAI developed a plan to transform into a commercial entity to attract investment capital. Musk’s lawsuit also involves Microsoft, LinkedIn co-founder Reid Hoffman, and several others. They are accused of attempting to eliminate OpenAI’s competitors, including Musk’s startup xAI, and entering into agreements with investors to refuse to fund alternatives.

As a reminder, in October, OpenAI raised $ 6.6 billion in investments, reaching a valuation of $ 157 billion. This was made possible by changing the corporate structure and lifting restrictions on profits for investors.