OpenAI launched a for-profit subsidiary a year later in order to raise outside capital, including more than $13 billion so far from its biggest backer, Microsoft. However, the non-profit entity, along with employees and investors, currently owns that for-profit subsidiary.

According to a report in the Financial Times, lawyers for Musk have contacted attorneys-general in Delaware and California to demand that a large stake in OpenAI be sold off in an open auction process.

Musk dropped the lawsuit but filed another one against Altman and OpenAI, this time elevating his accusations to claim OpenAI worked with Microsoft, an investor, to create a monopoly. The billionaire also alleged the company violated its founding claim as a nonprofit by pursuing profit. OpenAI has denied the allegations.

A lawyer for billionaire Elon Musk has asked attorney generals in the states of California and Delaware to push OpenAI to auction a major stake in its business to decide fair value of its charitable asset during its corporate restructuring,

The U.S. Federal Trade Commission weighed in on Friday on Elon Musk's lawsuit seeking to block OpenAI's conversion to a public company, pointing out legal doctrines that could support his claim that OpenAI and Microsoft engaged in anticompetitive practices.

Elon Musk and his attorneys have asked judges in the states of California and Delaware to cause an auction that would force OpenAI to sell off a portion of its business, the Financial Times reported.