Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has requested that the attorneys-general of California and Delaware mandate an auction of a major stake in OpenAI's business. This move comes amidst a bitter legal battle between Musk and OpenAI's co-founder and CEO, Sam Altman, over the company's proposed shift from a non-profit to a for-profit entity.

Musk's legal representative, Marc Toberoff, sent a letter to the top law officers of the two states on Tuesday, arguing that an auction is essential to protect the public's beneficial interest and ensure the non-profit receives maximum value for its assets. The letter contends that OpenAI's proposed for-profit transition could result in a departure from the mission Musk initially funded.

OpenAI, however, has no intention of conducting such an auction, according to a source familiar with the company's position. The startup has stated that the valuation of its charitable assets will be determined by independent financial advisors. OpenAI's spokesperson has also accused Musk of engaging in "lawfare" and stated that the company remains focused on its mission and work.

The dispute between Musk and Altman originates from OpenAI's plan to revamp its corporate structure, making its for-profit business independent from non-profit control. Musk, who owns AI startup xAI, is suing OpenAI in an effort to block the conversion, arguing that it is a departure from the mission he funded. The court is likely to rule on the preliminary injunction Musk's lawyers applied for later this month.

The attorneys-general of California and Delaware have not yet responded to Musk's request. However, Delaware Attorney General Kathy Jennings has weighed in on the case by sending an amicus brief to the court, stating that she is currently reviewing OpenAI's proposed changes. California Attorney General Rob Bonta has not commented on the case, despite a letter from Meta urging him to block it.

The legal battle between Musk and Altman highlights the complex dynamics at play in the AI industry, as well as the potential risks and opportunities associated with the commercialization of AI technology. As the AI landscape continues to evolve, investors and stakeholders must remain vigilant and adapt to the changing market conditions.