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OpenAI: “Musk considered fundraising via a coin offering in the early stages”
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Summary
- OpenAI said it reviewed a plan to establish a token-based for-profit organization to support the nonprofit and to pursue an initial coin offering (ICO).
- It said Elon Musk judged that an ICO would make it difficult to secure sufficient funding, and stepped away from OpenAI, saying he would focus on AI development at Tesla.
- OpenAI said it later adopted its current structure, in which the nonprofit entity retains control while combining it with a for-profit public-benefit corporation.
It has emerged that OpenAI, the developer of ChatGPT—one of the most talked-about artificial intelligence (AI) systems today—could have come to market in the form of a virtual asset (cryptocurrency). In particular, Elon Musk, Tesla’s chief executive officer (CEO) and one of OpenAI’s co-founders, is also said to have reviewed the plan.
According to CoinDesk, a digital-asset news outlet, on the 17th (Korea time) OpenAI published a short document titled “The truth Elon Musk hid” on its website. The document is OpenAI’s response material regarding the lawsuit Musk filed against OpenAI.
In the document, OpenAI said, “In January 2018, during discussions with OpenAI’s founding members, CEO Musk agreed to pursue an initial coin offering (ICO, Initial Coin Offering) as a way to establish a token-based for-profit organization to support OpenAI, a nonprofit.” The move is seen as aligning with a period when ICOs were rapidly spreading across global markets.
However, Musk reportedly concluded later that month that it would be difficult to raise sufficient funds through that approach, and subsequently stepped away from OpenAI, saying he would focus on AI development at Tesla. OpenAI explained, “After Musk diverged from the ICO concept, differences of opinion over the organization’s operating direction began to come to the fore.”
OpenAI later adopted its current structure, in which the nonprofit entity retains control while combining it with a for-profit public-benefit corporation.
