Musk asks state AGs to auction off OpenAI stake in nonprofit restructuring, sources say

California: So, here’s the scoop. Elon Musk’s lawyer is pushing for a big auction of OpenAI’s stake. They want to figure out how much it’s really worth as the company shakes things up.

The lawyer, Marc Toberoff, reached out to the attorney generals in California and Delaware. He thinks a competitive bidding process is the way to go to protect the public’s interest. OpenAI is trying to change its nonprofit structure, and Musk wants to make sure everything’s above board.

OpenAI, on the other hand, isn’t too thrilled about this. They say they’re focused on their mission and have plans to get independent financial advisors to help with the valuation. They’ve got a lot going on, especially after the success of ChatGPT.

Sam Altman, one of the co-founders, has made quite a name for himself since launching that AI tool. OpenAI is valued at a whopping $157 billion, thanks to some serious backing from Microsoft.

Now, Musk is also in a bit of a legal tussle with OpenAI, trying to block their transition to a for-profit model. He claims it goes against the mission he originally supported. The court’s expected to make a decision on this soon.

Delaware’s Attorney General is keeping an eye on things, having sent a brief to the court about OpenAI’s changes. Meanwhile, California’s AG hasn’t said much, even with Meta urging him to step in.