OpenAI Says Tokens Are Not Equity, No Partnership With Robinhood: Musk Says AI Company's Equity 'Is Fake'

Core Viewpoint - OpenAI has clarified that the "OpenAI tokens" offered by Robinhood are not actual equity of OpenAI and that there is no partnership or involvement between the two companies regarding this product [1][2]. Group 1: OpenAI's Position - OpenAI stated that any transfer of its equity requires company approval, which was not granted in the case of the tokens offered by Robinhood [1][2]. - The company advised users to exercise caution regarding the tokens, emphasizing that they do not endorse or support the product [2]. Group 2: Robinhood's Initiative - Robinhood announced the launch of tokenized shares as part of a broader initiative involving tokenized equities, staking, and blockchain infrastructure [3]. - A spokesperson from Robinhood mentioned that these tokens provide retail investors with indirect exposure to private markets, facilitated by Robinhood's ownership stake in a special purpose vehicle [3]. Group 3: Market Reactions - Following the announcement of the tokenized shares, Robinhood's stock reached a new all-time high, reflecting positive market sentiment [4]. - KeyBanc Capital Markets raised its price target for Robinhood's stock from $60 to $110, citing innovation and total addressable market (TAM) expansion as key drivers for the upgrade [5]. - Despite the positive outlook, Robinhood shares experienced a slight decline of 1.71% to $96.30 in extended trading on Wednesday [5].