OpenAI Denounces Unauthorized Equity Sales on Robinhood

OpenAI has issued a stern warning regarding the unauthorized sale of its tokenized equity on the trading platform Robinhood. The AI company clarified that any transfer of its equity requires explicit approval from OpenAI, and that it did not endorse or authorize the recent tokenized equity offerings on Robinhood. This statement was made in response to Robinhood's announcement of its new tokenized stock trading service, which includes equities and ETFs, and is available to users in Europe.

OpenAI's official statement, posted on the social media platform X, emphasized that the "OpenAI tokens" being offered on Robinhood are not legitimate OpenAI equity. The company explicitly stated that it had not partnered with Robinhood, was not involved in the tokenized equity offerings, and does not endorse them. OpenAI's warning underscores the importance of obtaining proper authorization for any equity transfers, as unauthorized sales can lead to legal and financial complications.

The launch of Robinhood's tokenized stock trading service has raised questions about the source of equity for companies like OpenAI and SpaceX. While the service offers access to a wide range of equities and ETFs, as well as a secondary market for equity in hot startups, the legitimacy of the equity being traded remains unclear. Experts have warned that private companies like OpenAI may not honor unauthorized equity sales in secondary markets, highlighting the risks associated with such transactions.

This is not the first time that tokenized equity offerings have raised concerns about authorization and legitimacy. In 2018, a blockchain startup called Swarm claimed it would be offering tokenized shares in startups, including Robinhood. However, many of the companies involved pushed back, stating that such sales would be unauthorized. Swarm maintained that its offerings came from "approved secondary market transactions," but the lack of clarity surrounding the source of equity remains a concern.

Looking at Robinhood's current tokenized offering, there is speculation that the equity represents interest in OpenAI shares that have already been acquired via authorized channels. This speculation is based on comments made by Robinhood's CEO, who mentioned having a relationship with a wealthy investor holding OpenAI and SpaceX shares. However, the exact nature of these shares and their legitimacy remains unclear, and OpenAI has not endorsed or authorized their sale on Robinhood's platform.

Experts have warned that private companies like OpenAI have the right to refuse to honor unauthorized equity sales, and that this could lead to more private companies canceling equity sales altogether for those who violate their shareholders' agreements. This highlights the need for greater transparency and regulation in the tokenized equity market, as well as the importance of obtaining proper authorization for any equity transfers.