Internal notes from early OpenAI discussions show that Elon Musk once supported an initial coin offering (ICO) to raise approximately $10 billion for the artificial intelligence organization, according to court filings released as part of Musk’s lawsuit against OpenAI.
The call transcripts from a January 2018 document conversations between Musk and OpenAI founders about creating a for-profit arm to support the nonprofit’s mission.
Musk agreed that an ICO could serve as a viable fundraising mechanism during these early discussions.
By the end of January 2018, however, Musk’s position had shifted. OpenAI founders stated that Musk concluded the organization would be unable to raise sufficient funding through an ICO and decided to redirect his focus toward artificial intelligence initiatives at Tesla instead.
The episode provides a rare window into how blockchain-based token funding was being considered by mainstream technology figures during the height of the ICO boom. For context, the 2017-2018 period saw startups raise billions through direct token sales to the public, driven by unclear regulatory frameworks and high investor demand.
ICOs represented a faster alternative to traditional venture capital funding during that era.
However, regulatory scrutiny and market volatility gradually cooled enthusiasm for the token-based fundraising model.
See also: X Platform Accused of Suppressing Crypto Posts as Users Report Algorithmic Hostility
Musk ultimately departed OpenAI later in 2018, leaving the organization to pursue a governance structure combining a public benefit corporation with a controlling nonprofit entity. This dual-structure model remains OpenAI’s approach today.
OpenAI has since evolved into a major player in the AI industry without relying on cryptocurrency-based fundraising. The organization has instead pursued traditional venture capital investments and corporate partnerships to support its operations.
The court documents also now show that the intersection of artificial intelligence and blockchain technology generated serious consideration among tech industry leaders during crypto’s early adoption phases. Though the ICO plan was ultimately abandoned, the discussion demonstrates the cryptocurrency sector’s reach into mainstream tech companies during 2017-2018.
Musk’s initial support for an OpenAI ICO contrasts with his later public statements about cryptocurrency and blockchain technology. The Tesla CEO has maintained a complicated relationship with digital assets in subsequent years.
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