Want to control ChatGPT? Musk writes to the Attorney General, requesting the forced auction of OpenAI shares.

Elon Musk's lawyer sent a letter to the attorneys general of California and Delaware, requesting pressure on OpenAI to auction off the for-profit subsidiary held by the non-profit entity, allowing external investors to participate in bidding. According to insiders, the value of the non-profit entity's holdings could be as high as billions of dollars. (Background: OpenAI's political maneuvering failure, will Sam Altman be unable to compete with Musk and Trump's 'AI alliance'?) (Background: Musk applies for injunction to 'prevent OpenAI from transforming into a for-profit company,' listing four major charges: monopolizing the AI market, profiting from Microsoft, etc.) OpenAI planned to transform into a for-profit company at the end of September last year. One of the discussed options was to become a Public Benefit Corporation (PBC), a form of enterprise that combines profit goals with social missions. Originally established as a 'non-profit research organization' in 2015, OpenAI established a for-profit subsidiary in 2019 to fund its money-burning AI model development, attracting significant external investments from companies such as Microsoft. According to OpenAI's plan, individuals holding shares in the for-profit subsidiary (including non-profit entities, employees, and investors) will continue to own shares after OpenAI's transformation into a PBC. Further reading: Bloomberg: OpenAI is discussing transformation into a for-profit company with regulators, valuation and Microsoft's equity distribution are key. Musk requests forced auction of OpenAI shares. However, today, the Financial Times reported that Elon Musk's lawyer, Marc Toberoff, sent a letter to the attorneys general of California and Delaware, requesting pressure on OpenAI to auction off the for-profit subsidiary held by the non-profit entity, allowing external investors to participate in bidding. According to the Financial Times, Marc Toberoff stated that he represents a group of major AI investors interested in participating in bidding for OpenAI shares. If successful, external investors may obtain significant equity in OpenAI, and may even influence its operational control. There has long been a disagreement between Musk and OpenAI CEO Sam Altman, especially during the process of OpenAI's transformation from a non-profit organization to a for-profit entity. The intention behind Musk's lawyer launching this appeal may not only be to participate in share transactions, but also to increase pressure or cause interference. Insiders familiar with OpenAI's internal decision-making revealed that OpenAI has no plans for such an auction, and added that Musk's camp 'just wants to create more chaos.' The value of the non-profit entity's holdings could be as high as billions of dollars. The report indicates that after OpenAI's transformation into a PBC, the new organization will be fully responsible for OpenAI's business operations and management, while the non-profit entity will continue to exist but will no longer directly participate in management, focusing instead on charitable initiatives in fields such as healthcare, education, and science. In other words, although the non-profit entity still holds shares in the PBC, it no longer participates in management, equivalent to relinquishing governance rights over OpenAI's business and operations. The value of these governance rights itself could be in the tens of billions of dollars. Toberoff emphasized in the letter that an auction is the only way for the non-profit entity to maximize the value of its assets and fulfill its fiduciary duty. Insiders revealed that the value of the PBC shares held by the non-profit entity could be as high as billions of dollars. Musk's goal is precisely these shares with enormous value. Musk applied for an injunction stating that during the $6.6 billion financing round carried out by OpenAI in October last year, it promised to transform into a PBC within two years, bringing its valuation to $157 billion. If the transformation is not completed on time, investors will have the right to recover their funds. However, this transformation has encountered frequent obstacles from Musk. At the end of November last year, Musk's lawyer submitted a motion for an injunction to the California District Court again, seeking to prohibit OpenAI from transforming into a for-profit company, and listed several charges, including: preventing investors from supporting OpenAI's competitors, such as xAI founded by Musk; benefiting from 'wrongly obtained competitive sensitive information' through OpenAI's connection with Microsoft; transforming OpenAI's governance structure into a for-profit organization and 'transferring any material assets, including intellectual property owned, held, or controlled by OpenAI, Inc., its subsidiaries, or affiliates'; causing OpenAI to conduct business with any defendant organization with 'significant economic interests.' Currently, this legal dispute is still brewing, and whether OpenAI can successfully complete the transformation awaits the final ruling of the court. Further reading: Musk applies for an injunction to 'prevent OpenAI from transforming into a for-profit company,' listing four major charges: monopolizing the AI market, profiting from Microsoft, etc. Related reports: OpenAI's shocking original plan in 2018 was an 'ICO launch coin'! But it was rejected by Musk for one reason. Bloomberg: OpenAI is discussing transformation into a for-profit company with regulators, valuation and Microsoft's equity distribution are key. Dissatisfaction with OpenAI's plan to transform into a for-profit company? Key figures, CTO, and two important researchers resign simultaneously. 'Want to control ChatGPT? Musk writes to the Attorney General, requesting forced auction of OpenAI shares.' This article was first published on BlockTempo, the most influential blockchain news media in the dynamic region.