Elon Musk is calling on US lawmakers in two states to auction of large stakes in OpenAI, as the long-running row between the two parties took a fresh turn, according to a report from The Financial Times.
The Financial Times saw a letter from a lawyer representing Musk, in which he called on attorney-generals in both California and Delaware to force an auction of OpenAI.
Musk makes the case that the auction is imperative to create an environment in which big AI investors can engage in a bidding process for a stake in the business is a fair, competitive and open way.
Musk was one of the co-founder of OpenAI in 2015, alongside its current CEO Sam Altman and nine other people.
However, his relationship with Altman deteriorated, and following a number of clashes, Musk decided to leave the board of OpenAI in 2018, and in the subsequent years that have passed, the SpaceX and Tesla owner has filed several lawsuits against the company he helped found.
It is reported that Musk’s ire comes from OpenAI’s intentions to restructure its model in an effort to create a for-profit entity separate from its non-profit business.
OpenAI has raised $13bn from investors for its for-profit arm. However, the unit is owned by its non-profit arm. The corporate restructuring of OpenAI would see OpenAI establish two units that are independent from each other, which would enable them to raise even more capital investment into its for-profit entity.
Musk is calling for the company to hold an auction in order to determine a fair market value for OpenAI’s assets, claiming that he was doing so to protect the public’s best interests.
When contacted by FT, an OpenAI spokesperson declared the company has no intentions whatsoever to hold an auction, and said Musk’s objective is to create chaos.
The news caps what has been a difficult few days for embattled OpenAI boss Altman, who was hit with a lawsuit from his sister over allegations of abuse.
Altman released a statement denying any wrongdoing.
