Worldcoin Token Drops Sharply Amid OpenAI Lawsuit
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Worldcoin, a cryptocurrency project known for offering tokens in exchange for eye scans, encountered a setback on Friday as its affiliated company, OpenAI, was sued by Elon Musk, one of its co-founders. Musk, who also owns the social media platform X, filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging breach of contract.
The lawsuit, filed on Thursday, claims that OpenAI and Altman violated agreements made with Musk when he helped establish the artificial intelligence research company in 2015. At that time, Musk and Altman served as co-chairs of OpenAI.
Elon Musk has filed a lawsuit against OpenAI arguing that it's abandoned its founding principle to be a non-profit
He wants the company to make its research & tech public and for Altman to return all the money he's made
Never a dull moment in the world of AI pic.twitter.com/ctbp3VOC9P
— Morning Brew ☕️ (@MorningBrew) March 1, 2024
Altman, in addition to his role at OpenAI, is a board member and co-creator of Worldcoin, which aims to establish a global digital identity system and distribute its tokens to every individual worldwide. The project has faced criticism for its approach to scanning people’s eyes using a spherical device, which some deem invasive and potentially unethical.
Worldcoin Token Records Rollercoaster Ride Today
Following news of the lawsuit, Worldcoin’s token (WLD) experienced a 10% decline in the late-Asian-early-London session on Friday. The token, which had reached a daily high of $8.43 in the Asian session, dropped to as low as $7.52 before rebounding slightly. As of the time of this report, WLD is trading at $8.06, showing resilience despite the morning dip.
The lawsuit comes amidst rapid growth and innovation in the artificial intelligence industry. Over the past year, several AI-related tokens have surged in value following positive developments in the sector.
For example, in February, Nvidia, a leading chipmaker, reported better-than-expected earnings for the fourth quarter, and OpenAI launched a new product capable of generating videos from text.
OpenAI, founded with the vision of creating and sharing beneficial artificial intelligence for humanity, has received substantial funding and support from Microsoft. In January 2023, Microsoft announced a “multiyear, multibillion-dollar investment” in OpenAI to “accelerate AI breakthroughs.” However, Reuters reported in December that Microsoft does not own a stake in OpenAI.
The lawsuit indicates Musk’s discontent with the direction and governance of OpenAI. According to the Financial Times, the lawsuit aims to ensure that OpenAI adheres to its original mission of serving the common good and does not develop technology that favors specific individuals or companies.
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