Worldcoin’s WLD Dips 6% after Elon Musk’s Lawsuit against OpenAI

Updated on Mar 2, 2024 at 4:47 pm UTC by · 3 mins read

Musk argued that the launch of ChatGPT-4 represents a significant departure from OpenAI’s core principles.

Worldcoin’s WLD token dropped 6% after Elon Musk, the billionaire CEO of both Tesla and SpaceX, filed a lawsuit against OpenAI and its chief executive officer, Sam Altman, for violations of their nonprofit agreement.

According to CoinMarketCap data, the crypto token, which is heavily associated with Altman, tumbled to $7.5 after trading as high as $9.3 in the last seven days. The token was designed as a reward for users who allow Worldcoin to scan their eyes in exchange for World ID, a digital humanness passport.

Elon Musk Sues OpenAI and Its CEO

On Friday, Musk filed a lawsuit against OpenAI and its CEO, alleging that the company has strayed from its original mission of advancing open-source artificial general intelligence (AGI) for the greater good of humanity.

The lawsuit, filed at the Superior Court of California for the County of San Francisco, specifically points to OpenAI’s partnership with Microsoft as evidence of the deviation.

The billionaire CEO, who played a key role in founding OpenAI but later distanced himself from the firm, has voiced strong concerns about its current path.

Musk argued that the launch of ChatGPT-4 represents a significant departure from OpenAI’s core principles.

Unlike its predecessor, ChatGPT-4 is a closed model, a move that Musk believes primarily benefits Microsoft financially. This shift, in his view, contradicts OpenAI’s original nonprofit mission and raises questions about the company’s direction.

He also pointed to the removal and subsequent reinstatement of Sam Altman in November 2023 as evidence of a profit-oriented agenda designed to align with Microsoft’s interests.

Initially established as a nonprofit AI research lab in 2015, OpenAI took a commercial turn in 2020 with the establishment of its business  unit. In a post on X, Musk said it has shifted from advancing AI for the greater good to pursuing profit and speed above all else.

Musk Demands OpenAI to Return to its Original Mission

Musk also cited other complaints such as contract breaches, violations of fiduciary duty, and unfair business practices in the lawsuit.

The Tesla and SpaceX CEO requested OpenAI to return to its open-source principles. He is also asking for an injunction to prevent the for-profit exploitation of AGI technology.

In his critique, Musk questioned the expertise of OpenAI’s current board, alleging that it lacks the technical knowledge necessary for responsible AGI development.

Despite his departure from OpenAI, Musk has continued his mission of building responsible AI products for humanity.

Last year, he launched his own artificial intelligence company named xAI. The new venture will focus on developing safer AI tools. The CEO stated that rather than explicitly programming morality into its AI, xAI will aim to create a “maximally curious” AI.

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