Musk's lawyer sent a letter to the Attorneys General of California and Delaware, requesting pressure on OpenAI to auction off the shares of the for-profit subsidiary held by the nonprofit entity, allowing external investors to participate in the bidding. According to informed sources, the value of the nonprofit's holdings could reach hundreds of billions of dollars. (Background: OpenAI's political maneuvering has failed, can Sam Altman compete with Musk and Trump's 'AI Alliance'?) (Additional context: Musk applied for an injunction to 'prevent OpenAI from transforming into a for-profit entity,' listing four major charges: monopolizing the AI market, benefiting Microsoft...) OpenAI planned to transform into a for-profit company at the end of September last year, one of the discussed options was to become a public benefit corporation (PBC), a corporate form that combines profit objectives with social missions. OpenAI was initially established as a 'nonprofit research organization' in 2015, but to fund the costly development of AI models, it created a for-profit subsidiary in 2019, which subsequently attracted significant external investments from various parties, including Microsoft. According to OpenAI's plans, those who hold shares in the for-profit subsidiary (including the nonprofit entity, employees, and investors) will continue to own shares after OpenAI transitions to a PBC. Extended reading: Bloomberg: OpenAI is discussing the transformation into a for-profit company with regulators, with valuation and Microsoft's equity distribution being key points. Musk demands forced auction of OpenAI shares. However, today, (Financial Times) reported that Musk's lawyer Marc Toberoff sent a letter to the Attorneys General of California and Delaware, requesting pressure on OpenAI to auction off the shares of the for-profit subsidiary held by the nonprofit entity, allowing external investors to participate in the bidding. According to (Financial Times), Marc Toberoff stated that he is making this request on behalf of a group of large AI investors interested in participating in the OpenAI share bidding. If successful, external investors could gain significant equity in OpenAI, potentially even affecting operational control. There has been a long-standing disagreement between Musk and OpenAI's CEO Sam Altman, particularly during OpenAI's transition from a nonprofit organization to a for-profit entity. Musk's lawyer initiated this plea, possibly not only to participate in the share transaction but also with the intent to increase pressure or cause disruption. Individuals familiar with OpenAI's internal decision-making revealed that OpenAI has no such auction plans and added that Musk's camp 'just wants to create more chaos.' The value of the nonprofit's holdings could reach hundreds of billions of dollars. Reports indicate that after OpenAI transitions to a PBC, the new organization will be fully responsible for OpenAI's business operations and management, while the nonprofit entity will continue to exist but will no longer participate directly in management, focusing instead on charitable programs in areas such as healthcare, education, and science. In other words, although the nonprofit entity still holds shares in the PBC, it will no longer participate in management, equivalent to relinquishing governance rights over OpenAI's business and operations. The value of these governance rights alone could reach billions of dollars. Toberoff emphasized in his letter that the auction is the only way for the nonprofit entity to maximize asset value and fulfill its fiduciary responsibilities. Informed sources revealed that the value of the PBC shares held by the nonprofit entity could reach hundreds of billions of dollars. Musk's goal is precisely these highly valuable shares. Musk applied for an injunction. In the $6.6 billion financing that OpenAI undertook last October, it promised to transition to a PBC within two years, and this round of financing boosted its valuation to $157 billion. If the transformation is not completed on time, investors will have the right to reclaim their funds. However, this transformation has encountered frequent obstacles from Musk. At the end of November last year, Musk's lawyer submitted another injunction motion to the U.S. District Court for California, requesting to prohibit OpenAI from transforming into a for-profit company, listing multiple charges, including: Preventing investors from supporting OpenAI's competitors, such as Musk's xAI. Benefiting from 'competitively sensitive information obtained through errors' via OpenAI's connections with Microsoft. Changing OpenAI's governance structure to a for-profit organization and 'transferring any material assets, including intellectual property owned, held, or controlled by OpenAI, Inc., its subsidiaries, or affiliates.' Engaging in business with organizations that have 'significant economic interests' in any defendants. Currently, this legal dispute is still unfolding, and whether OpenAI can successfully complete the transformation remains to be seen pending the court's final decision. Extended reading: Musk applies for an injunction to 'prevent OpenAI from transforming into a for-profit entity,' listing four major charges: monopolizing the AI market, benefiting Microsoft... Related reports: OpenAI shockingly revealed its original 2018 plan for 'ICO issuance'! But was vetoed by Musk for a reason. Bloomberg: OpenAI is discussing the transformation into a for-profit company with regulators, with valuation and Microsoft's equity distribution being key points. Discontent with OpenAI's proposed transition to a for-profit entity? Key technical figures and two important researchers leave simultaneously. 'Want to control ChatGPT? Musk writes to the Attorney General, demanding a forced auction of OpenAI shares.' This article was originally published in BlockTempo (the most influential blockchain news media).