OpenAI terms illicit Robinhood's trading of its 'tokens'

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OpenAI has issued a public disclaimer distancing itself from Robinhood's sale of so-called "OpenAI tokens," warning consumers that the tokens do not represent equity in the company. 

"These 'OpenAI tokens' are not OpenAI equity," the company said in a statement posted to its official newsroom account on X. 

"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," it said.

The warning came in response to Robinhood's announcement last week that it would begin offering tokenised shares of OpenAI, SpaceX, and other private companies to retail investors in the European Union. 

Marketed as a way to give everyday investors blockchain-based exposure to high-profile private firms, the launch briefly pushed Robinhood's stock to a record high.

But Robinhood's offering is not direct equity in OpenAI or the other companies. Instead, the tokens appear to be tied to Robinhood's ownership in a special purpose vehicle (SPV) that holds shares in those firms. 

Robinhood CEO Vlad Tenev in a post on X described the tokens as contracts "that follow [stock] price" and said they are "planting a seed for something much bigger."

Robinhood’s help center confirms that the tokens are not actual shares but tokenised contracts recorded on a blockchain that track the price of the associated equity.

Robinhood is a US-based financial services company known for its commission-free stock and crypto trading app. It allows users to invest in stocks, ETFs, options, and digital assets via a mobile platform.