Tesla CEO and tech entrepreneur Elon Musk strongly opposed a 2018 proposal by OpenAI CEO Sam Altman to launch a cryptocurrency token. Recently disclosed court documents reveal Musk believed that an initial coin offering (ICO) could harm OpenAI’s credibility and reputation.
Musk Rejected the ICO Plan
According to a filing submitted on November 14 to the United States District Court for the Northern District of California, Musk dismissed Altman’s suggestion to fund OpenAI through an ICO. The filing references Musk, claiming that the decision would lead to “a significant loss of credibility for OpenAI and everyone connected with the ICO.”
Altman had proposed the token sale as a way to raise funds for the organization. This came just months after he suggested converting OpenAI from a nonprofit into a for-profit entity. However, Musk firmly rejected the idea, seeing it as both risky and unnecessary.
Disputes Over OpenAI’s Future Direction
The disagreement over the ICO was not the only tension between Musk and OpenAI’s leadership. Musk opposed efforts by Altman and OpenAI President Greg Brockman to turn the organization into a for-profit company. He believed OpenAI should remain a nonprofit dedicated to advancing AI research for the public good.
In 2017, Musk reportedly gave an ultimatum. He told Altman and Brockman that he would only fund OpenAI if they committed to keeping it a nonprofit. “I will halt funding OpenAI unless you make a definitive commitment to stay,” Musk wrote. He added that continuing without this commitment would make him “a fool providing free funding for a start-up.”
When Altman and Brockman suggested the ICO months later, Musk described it as a “get-rich-quick scheme.” His legal team echoed this sentiment in court filings, underscoring Musk’s concerns about OpenAI’s shifting priorities.
Musk’s Lawsuit Against OpenAI
The details of these conflicts emerged as part of Musk’s ongoing legal battle with OpenAI and Altman. In August 2023, Musk refiled a lawsuit originally submitted in February. He alleges that OpenAI violated its promise to remain a nonprofit. According to Musk, the decision to transition to a for-profit model was made secretly after he stopped his financial support.
This lawsuit reflects Musk’s broader worries about OpenAI’s direction. He argues that its transformation undermines its mission of developing AI ethically and responsibly.
Musk Sees Progress in a Separate Case
In another legal matter, Musk experienced a victory on November 14. The plaintiffs withdrew a class-action lawsuit accusing him and Tesla of manipulating Dogecoin prices through social media. The lawsuit accused Musk of inflating Dogecoin’s value for his own benefit. However, the plaintiffs dropped the case and agreed not to pursue further legal action.
Broader Implications for Tech Ethics
Musk’s rejection of the ICO and his broader concerns about OpenAI highlights the challenges of balancing ethics and funding in the tech world. His legal actions could influence not only OpenAI’s future but also governance standards in AI research.
As AI and cryptocurrency continue to evolve, this case underscores the ethical and strategic dilemmas that come with rapid innovation. It highlights the crucial role of transparency and accountability in shaping the future of technology.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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