OpenAI Rejects Robinhood’s Tokenized Shares, Sparks Equity Debate
Investors should be aware that these assets are not official shares in OpenAI or SpaceX.
OpenAI has publicly disavowed a new crypto token launch by Robinhood, clarifying to investors that the assets do not represent legitimate equity in the artificial intelligence firm. The rebuke ignited a debate over the legality and ethical implications of “tokenizing” shares of private companies, with SpaceX CEO Elon Musk adding fuel to the fire with a pointed critique of OpenAI’s business model.
Robinhood’s Bold Move and Initial Market Reaction
Robinhood unveiled the tokenized shares of private firms during a product event in Cannes, signaling a broader expansion into cryptocurrency products, including staking and blockchain infrastructure. The company initially offered eligible European users 5 euros worth of OpenAI and SpaceX tokens for signing up before July 7, excluding US users due to existing regulatory constraints.
The announcement initially propelled Robinhood’s stock past the $100 mark to record highs. However, this rally proved short-lived. Following OpenAI’s denial of any partnership or endorsement, Robinhood’s stock value subsequently declined.
OpenAI’s Firm Stance and Musk’s Intervention
OpenAI was unequivocal in its response, posting on X: “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.” The company further emphasized that “any transfer of OpenAI equity requires our approval — we did not approve any transfer.”
Elon Musk, CEO of SpaceX, weighed in on the controversy, responding to OpenAI’s post with a dismissive comment: “Your ‘equity’ is fake.” While Musk’s statement did not directly address Robinhood, it targeted OpenAI’s recent transition to a for-profit structure.
Notably, Musk did not comment on Robinhood’s offering of SpaceX tokens, and SpaceX has yet to issue a public statement regarding the matter. This silence leaves the legitimacy of tokenizing SpaceX equity uncertain, unlike OpenAI’s explicit denial.
Exposure vs. Equity: Robinhood Defends its Approach
Robinhood CEO Vlad Tenev defended the initiative on X, acknowledging that the tokens are not technically equity but asserting they provide investors with valuable exposure to high-demand companies like OpenAI and SpaceX.
Tenev characterized the launch as “a seed for something much bigger,” revealing that “many private companies” have since expressed interest in joining Robinhood’s efforts to tokenize private markets.
Legal and Contractual Concerns Emerge
Despite Tenev’s optimism, industry experts have raised concerns about the legal and contractual risks associated with offering synthetic exposure to private companies without their explicit approval.
“Offering synthetic exposure without company approval could raise serious legal and contractual risks,” warned Rob Hadick, General Partner at Dragonfly. He cautioned that such actions could even lead private companies to cancel planned equity sales if existing shareholder agreements are violated. According to Hadick, without direct buy-in from the companies themselves, “exposure could turn into exposure risk.”
This situation highlights the complex legal landscape surrounding the tokenization of private assets and the potential for conflict between brokerage firms and the companies they seek to represent.
This article was originally published on our sister site TechRepublic on July 3, 2025.
