Musk Seeks Auction of OpenAI Stake in Legal Battle

Elon Musk is seeking a court-ordered auction of OpenAI's charitable assets to determine their fair market value, Reuters reports, citing sources familiar with the matter. This move is part of Musk's ongoing legal battle to block OpenAI's corporate restructuring.

In a letter to the attorneys general of California and Delaware, Musk's lawyer, Marc Toberoff, argued that a competitive bidding process would best "protect the public's beneficial interest" during OpenAI's transition to remove non-profit control. The Financial Times first reported on the letter.

"Elon is engaging in lawfare. We remain focused on our mission and work," an OpenAI spokesperson told Reuters in a statement. OpenAI has previously stated that the valuation of its charitable assets will be determined by independent financial advisors.

The legal battle stems from Musk's lawsuit to prevent OpenAI's conversion, arguing that it deviates from the original mission he funded. The court is expected to rule on a preliminary injunction request from Musk's lawyers later this month.

OpenAI, co-founded by Sam Altman and Musk, has become a major player in the technology world following the launch of its popular AI tool, ChatGPT. Backed by Microsoft, OpenAI was valued at $157 billion in October after raising $6.6 billion from investors.

In December, OpenAI detailed its plan to create a public benefit corporation, arguing that it would enable the company to "raise more capital than we'd imagined" and result in "one of the best-resourced non-profits in history."

Delaware Attorney General Kathy Jennings has weighed in on the case, expressing concern about OpenAI's proposed changes. California Attorney General Rob Bonta, who also has jurisdiction, has not yet commented.

Musk's legal team is also seeking the appointment of a special master to oversee the OpenAI restructuring.