OpenAI publicly stated on Wednesday that the so-called "OpenAI tokens" offered by Robinhood Markets, Inc. (NASDAQ:HOOD) are not OpenAI equity and clarified it has no partnership or involvement with Robinhood regarding the product.
The Details: OpenAI Newsroom said in a post on X that any transfer of its equity requires company approval, which was not granted in this case, and advised users to be cautious.
"These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval -- we did not approve any transfer. Please be careful," the company wrote in the post.
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Robinhood announced the launch of the tokenized shares on Monday as part of a broader initiative around tokenized equities, staking and blockchain infrastructure.
"These tokens give retail investors indirect exposure to private markets, opening up access, and are enabled by Robinhood's ownership stake in a special purpose vehicle," a Robinhood spokesperson said in response to OpenAI's post, per CNBC.
Elon Musk, an original co-founder of OpenAI who has openly feuded with its CEO Sam Altman, responded to OpenAI's post.
"Your ';equity' is fake," wrote Musk.
What Else: Robinhood shares hit a new all-time high Wednesday, following its recent series of major announcements revealing a more comprehensive push into the cryptocurrency space.
KeyBanc Capital Markets on Monday increased its price target for the stock to $110 from $60, maintaining an Overweight rating. KeyBanc analysts cited Robinhood's "first-rate innovation" and "TAM expansion" as primary drivers for the upgrade.
HOOD: Robinhood shares were down 1.71% at $96.30 in Wednesday's extended trading, according to Benzinga Pro.
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