Key Takeaways:

• Elon Musk's attorney requests an auction of OpenAI's major stake to assess fair market value amid its restructuring.
• The tech company's transition to a public benefit corporation raises concerns over its original non-profit mission.
• Delaware Attorney General is reviewing OpenAI's proposed changes and may influence the legal outcome.
• Musk is currently involved in a legal battle against OpenAI over this restructuring.

A lawyer representing Elon Musk has formally requested the attorney generals of California and Delaware to facilitate an auction of a significant stake in OpenAI. This request aims to ascertain the fair value of the company’s charitable assets during its ongoing corporate restructuring, as reported by Reuters and South China Morning Post. Musk's attorney, Marc Toberoff, sent a letter to the state officials on Tuesday, advocating that a competitive bidding process is necessary to "protect the public's beneficial interest." This request comes as OpenAI embarks on a path to eliminating the control of its non-profit operations.

In response, an OpenAI spokesperson asserted, "Elon is engaging in lawfare. We remain focused on our mission and work." The organization has previously indicated that any valuation of its charitable entities would be conducted by independent financial advisors. Musk, a co-founder of OpenAI, originally partnered with individuals like Sam Altman, who has gained prominence following the launch of the AI tool, ChatGPT.

OpenAI was reportedly valued at approximately $157 billion in October 2023 after successfully raising $6.6 billion from several investments, primarily backed by Microsoft. The company is planning to create a public benefit corporation, aiming to streamline fundraising processes while maintaining its philanthropic roots. However, Musk is in the process of suing OpenAI to halt its conversion to a for-profit entity, arguing that this shift diverges from the initial mission he supported.

With the court set to deliberate on Musk's request for a preliminary injunction later this month, Delaware Attorney General Kathy Jennings has submitted an amicus brief indicating her office’s commitment to critically assess the situation. Legal experts, including Professor Darryll Jones from Florida A&M University, suggest that Delaware's watchful stance may challenge attempts to block OpenAI's restructuring process. Meanwhile, California Attorney General Rob Bonta has yet to issue a statement on the matter, despite pressure from Meta to intervene.

For further details, view the original articles from Reuters and South China Morning Post.