After seeking to prevent OpenAI from transforming into a profit-making organization, Musk is now opening a new front against OpenAI, this time intending to force the auction of OpenAI shares, so that even if OpenAI successfully transforms, it may still be controlled by external investors.

The letter obtained by the Financial Times of the United Kingdom shows that Musk's lawyer, Marc Toberoff, addressed the Attorney Generals of California and Delaware, who hold positions equivalent to the chief prosecutors of the states, urging the law enforcement agencies of these two states to force OpenAI to auction a large number of the company's shares.

Toberoff claims he is representing large investors in the AI field who wish to participate in a competitive public bidding process regarding OpenAI's equity.

Specifically, Toberoff aims to push for allowing the aforementioned external investors to participate in bidding for the business shares currently held by the non-profit organization OpenAI, which is essentially seeking control over OpenAI's future profit-oriented operations.

At the end of last month, OpenAI's official website announced plans to transform its existing profit-making organization into an entity called a Public Benefit Corporation (PBC), established under the laws of the state of Delaware in the USA.

PBC has both profit-making and social benefit attributes, and compared to the existing structure, it represents a form more aligned with traditional companies. OpenAI stated at that time that PBC would have common stock and would also pursue OpenAI's mission of achieving Artificial General Intelligence (AGI) as part of its public interest.

OpenAI also plans to allow the existing non-profit organization to hold shares in the PBC, thereby gaining substantial rights in the currently profitable organization.

According to OpenAI's aforementioned plans, after transforming into a PBC, the non-profit entity would control OpenAI's business and operation. If Toberoff, representing Musk, succeeds in his appeal for state law enforcement agencies to force OpenAI to auction shares, external investors could successfully acquire a substantial portion of the PBC through bidding and gain control over OpenAI.

Tobolov stated in a letter that an auction is the only way to ensure that the non-profit organization can obtain the maximum value from its assets and fulfill its fiduciary duty.

The Financial Times reported that sources revealed OpenAI has no such auction plans, asserting that Musk's camp just wants to "create more chaos." Insiders also disclosed that the PBC shares held by the non-profit organization OpenAI could be worth several billion dollars.

At the end of last month, OpenAI did not disclose an estimated value for PBC, but stated that PBC would be assigned a fair valuation by independent financial advisors and that the non-profit's stake in PBC would exponentially increase the resources provided by OpenAI's donors, thus creating "one of the richest non-profit organizations in history."

OpenAI indicated at the time that the current structure does not allow the Board of Directors to directly consider the interests of OpenAI investors, nor does it permit the non-profit organization to easily control matters outside of the for-profit entity.

In the future, PBC will operate and control OpenAI's Operation and Business, while the non-profit organization will hire leadership teams and employees to carry out charitable activities in sectors such as Medical Care, Education, and Science. In other words, PBC will be responsible for OpenAI's commercial operations, while the non-profit organization will employ personnel for charitable activities.

However, OpenAI faces many unresolved issues in its transition to PBC, such as determining the value of major "financial backers" investments in OpenAI within the PBC context.$Microsoft (MSFT.US)$An insider stated that OpenAI has not immediately begun negotiations regarding the valuation of investments from Microsoft and that it may take several months.

Editor/danial