The secret story of Elon Musk and the $10 billion ICO plan by OpenAI

Internal documents recently uncovered reveal a fascinating chapter in technological history: in early 2018, Elon Musk briefly supported an ambitious fundraising plan through a token offering (ICO) for OpenAI. The discovery comes from internal transcripts and notes published as part of the legal documentation related to the Musk organization dispute, offering an intriguing glimpse into how tech leaders viewed cryptocurrencies at that pivotal moment.

How Musk briefly supported the ICO in 2018

The internal conversations date back to January 2018, during the peak of the ICO craze that characterized the 2017-2018 two-year period. According to the published transcripts, Musk agreed with OpenAI’s founders that the organization could proceed with raising approximately $10 billion through a tokenized offering. At the time, ICOs represented an innovative and exciting funding mechanism for tech startups, with investors ready to finance projects through direct token purchases, bypassing traditional venture capital channels.

The notes show that OpenAI’s founders were seriously considering creating a for-profit arm—structured around tokens and cryptocurrencies—to support the organization’s non-profit mission. During that period, when regulation was still unclear and investor enthusiasm was sky-high, such a strategy appeared plausible and potentially revolutionary.

The reversal: why Elon Musk abandoned the idea

By the end of January 2018, however, Musk’s position underwent a radical change. Internal documents reveal that the tech magnate concluded that OpenAI would not be able to raise sufficient funds through an ICO and decided to completely change his approach. According to the notes, Musk instead chose to focus his efforts on artificial intelligence work at Tesla, effectively marking the beginning of his distancing from OpenAI.

This decision represented a crucial turning point: the lack of support from an influential figure like Musk contributed to the downfall of the organization’s ICO plan. The episode highlights how, even during the height of cryptocurrency enthusiasm, tech sector leaders prudently evaluated token-based funding opportunities, especially when financial sustainability appeared uncertain.

How this decision shaped OpenAI’s current structure

The abandonment of the ICO plan and Musk’s subsequent departure from OpenAI in 2018 had lasting consequences on the company’s organizational setup. OpenAI adopted a hybrid structure combining a public benefit corporation with a controlling non-profit entity—a model that continues to characterize the organization today.

Elon Musk’s story and the failed ICO attempt illustrate how the landscape of cryptocurrencies and fundraising was radically different during the 2017-2018 boom compared to today. Legal documents have finally shed light on a decision that, at the time, seemed routine but proved decisive in shaping the trajectory of one of the most influential AI organizations in the world.