On Thursday, the price of Worldcoin’s WLD token dipped following news of Elon Musk’s lawsuit against OpenAI and its CEO, Sam Altman, alleging a breach of their nonprofit agreement.
The lawsuit argues that OpenAI’s collaboration with Microsoft deviates from its foundational principles of advancing open-source artificial general intelligence (AGI) for the benefit of humanity.
Profit-driven Direction Violates 2015 Agreements
Filed in a California court, the lawsuit outlines several complaints, including a breach of contract, fiduciary duty violation, and unfair business practices.
The conflict reportedly stemmed from OpenAI’s shift from a nonprofit AI research lab in 2015 to a commercial entity with a business arm established in 2020.
Musk, a co-founder of OpenAI, claimed that Sam Altman persuaded him to provide substantial financial support to the digital intelligence organization based on certain guarantees.
The owner of X (formerly Twitter) stated that Altman assured him that OpenAI would remain a nonprofit entity focused on countering competitive threats from tech giants like Google.
Musk alleged that OpenAI’s collaboration with Microsoft, a leading technology corporation, signifies a shift towards commercializing its AGI research.
Elon Musk v OpenAI lawsuit simply summarized by Grok pic.twitter.com/iPeVl1q3OS
— Sir Doge of the Coin (@dogeofficialceo) March 1, 2024
He said the partnership contradicts OpenAI’s commitment to advancing AI for humanity. The SpaceX leader argued that the partnership to monetize GPT-4 reflects a focus on profit over positive human impact.
This lawsuit comes just days after OpenAI unveiled its new video generation model, Sora. While OpenAI’s flagship product, ChatGPT, is free for users on its website and mobile apps, users can upgrade to a paid version that unlocks their most advanced GPT-4 model.
OpenAI’s revenue has reportedly exceeded $2 billion annually, largely driven by ChatGPT’s success.
Musk, who views AI as a major threat to human civilization, has advocated for rigorous government regulation and careful handling of AI research.
Additionally, he criticized the expertise of OpenAI’s current board, claiming it needs to gain the technical knowledge required for responsible AGI development.
Musk urged OpenAI to return to its open-source principles and requested an injunction to prevent the for-profit exploitation of AGI technology.
The lawsuit represents an important legal battle in the tech industry, highlighting the tensions between commercial interests and ethical principles in AI development.
More WLD Token Price Decline Expected
WLD, the native token of Worldcoin, dropped by 5% to $7.1 following the news of the Musk lawsuit, before rising back to $8.3 in the early hours of Friday. The price has consolidated and is now trading at $7.95, however– about a 2.4% increase within 24 hours.
Meanwhile, the trading volume is down by about 20.3%, which could suggest that investors are gradually shifting away from the coin.
The exponential moving average (EMA) is above the long-term EMA, so the market should expect further bullish momentum.
The Relative Strength Index (RSI) value of 52.8 also suggests a moderate level without extreme overbought or oversold conditions.
Overall, the WLD price could retrace or consolidated further. An upside reward could see the price push beyond $9, and a downside risk could see it fall to $5.
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