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Elon Musk has reportedly called for attorneys general in California and Delaware to mandate an auction of significant stakes in OpenAI, the company behind ChatGPT, citing the need for an open and competitive process to determine the company’s fair market value.
The request is the latest escalation in Musk’s ongoing feud with OpenAI, which he co-founded in 2015 alongside current CEO Sam Altman and others.
According to the Financial Times, Musk’s legal representative argued the case on behalf of major AI investors who advocate for a transparent valuation of OpenAI’s assets to protect the public interest.
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Musk departed OpenAI’s board in 2018, reportedly due to disagreements with Altman. Since then, he has been a vocal critic of the company, particularly its 2019 restructuring that created a for-profit entity to support its non-profit mission.
The current structure allows OpenAI’s for-profit arm to raise substantial funds—$13 billion to date—while ownership remains tied to the non-profit organisation, alongside employees and external investors. However, OpenAI is considering a corporate restructure that would make the for-profit and non-profit units independent, enabling greater fundraising capabilities.
Musk opposes this move, advocating instead for an auction to determine a fair market value for OpenAI’s charitable assets. He contends this approach would safeguard public interests and ensure transparency in the company’s financial operations.
In response to Musk’s demands, an OpenAI representative dismissed the proposal, stating the company has no plans to hold an auction. The spokesperson accused Musk and his allies of seeking to create “more chaos.”
The dispute with Musk adds to a challenging period for OpenAI CEO Sam Altman, who is currently dealing with a lawsuit filed by his sister alleging abuse—claims Altman has categorically denied in a public statement.
The ongoing legal and public relations battles highlight the tensions surrounding the rapidly evolving AI industry. OpenAI’s corporate decisions and Musk’s calls for greater transparency may set precedents for how AI firms navigate issues of governance, fundraising, and public accountability in the future.
For now, the clash underscores the high stakes involved in the world of generative AI and its impact on global technology, economics, and policy.
