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Musk Seeks Auction of OpenAI Stake Through State Attorneys General

Elon Musk has asked the attorney generals of California and Delaware to facilitate an auction of OpenAI’s stake to establish the fair market value of its charitable assets during the company’s ongoing corporate restructuring. The request was made through a letter sent by Musk’s attorney, Marc Toberoff, on Tuesday, urging the states to implement a competitive bidding process to ensure the protection of public interests, as OpenAI works to distance its non-profit control.

Musk’s move comes amid OpenAI’s plans to convert into a public benefit corporation and separate its for-profit business from its charitable structure. OpenAI has stated that the valuation of its assets will be handled by independent financial advisors, despite Musk’s push for a more open bidding process.

Sam Altman, who co-founded OpenAI with Musk, helped propel the company into the limelight with the release of the ChatGPT AI tool in 2022. Backed by Microsoft, OpenAI was valued at $157 billion after raising $6.6 billion in investment. However, Musk, who owns the AI startup xAI, is challenging OpenAI’s conversion through legal means, arguing that it contradicts the original mission he had funded the company for. The court is expected to make a ruling later this month on Musk’s preliminary injunction.

In December, Delaware Attorney General Kathy Jennings filed an amicus brief, indicating her office’s scrutiny of OpenAI’s restructuring plans, while California’s Attorney General Rob Bonta has yet to make any public comments on the case. Musk’s legal efforts are supported by the AI safety group Encode, which has joined the push to block the transition, raising concerns about potential fiduciary violations.

 

German Government Considers Leaving X Over Algorithm Concerns, Spokesperson Reveals

The German government is actively evaluating the possibility of abandoning its presence on X, formerly known as Twitter, citing concerns over the platform’s algorithms. A government spokesperson confirmed on Friday that this issue is under continuous review, especially following a live broadcast on the platform featuring Elon Musk and Alice Weidel, the leader of the far-right Alternative for Germany (AfD) party.

The spokesperson explained that X and other social media platforms have algorithms that promote content in ways that are not conducive to “calm, objective, and balanced discourse,” but instead tend to encourage agitation and polarization. Although the government has not made a final decision, it has chosen to remain on the platform for the time being due to its ability to reach a broad audience.

Musk’s growing support for far-right and anti-establishment parties, particularly in the lead-up to Germany’s February 23 election, has sparked controversy. German institutions, including unions and universities, have already distanced themselves from X in protest. During a live session on Thursday, Musk reiterated his endorsement of the AfD, a far-right party that is considered extremist by German security services, which has led to increasing tensions in Berlin.

However, the government spokesperson clarified that concerns over the platform are not directly related to Musk’s political involvement in Germany. The spokesperson emphasized that it is up to the European Commission in Brussels to determine whether X is complying with EU laws, especially during election periods.

 

Italy Seeks Full Data Control in Potential Starlink Deal, Musk Adviser States

Italy is considering a deal with Elon Musk’s Starlink for secure satellite communications, with a strong emphasis on maintaining full control over its data. The potential five-year agreement, valued at 1.5 billion euros ($1.6 billion), would provide encrypted communications for Italy’s government, diplomats, and defense personnel in sensitive and high-risk areas.

The move has sparked criticism from opposition parties, who question whether Italy should rely on a company owned by U.S. billionaire Elon Musk for handling such critical communications. Starlink, a subsidiary of Musk’s SpaceX aerospace business, operates 6,700 active satellites in low-Earth orbit, positioning it as a leading player in satellite telecommunications.

Andrea Stroppa, an adviser for Musk’s aerospace ventures, reassured the public during an interview with Italian state broadcaster RAI, stating that Italian institutions would retain full control over their data. He emphasized that while the technology would be provided by a U.S.-owned company, Italy’s national interests would be safeguarded. The discussions began before Prime Minister Giorgia Meloni assumed office in October 2022.

Meloni, who has a well-documented positive relationship with Musk, dismissed concerns raised by opposition leaders, assuring that the government’s evaluation of the project would remain impartial.