OpenAI CFO Sarah Friar visited with CNBC today to discuss AI in general, the incredible opportunity, and expectations for the industry. As part of the discussion, she was asked about platforms that are tokenizing their shares.
OpenAI, creator of ChatGPT, is a private firm with a possible valuation of around $500 billion. The company has raised money in the private market, which is typically open only to Accredited Investors.
Platforms like Republic and Robinhood are pursuing strategies to tokenize private shares. On Republic, “Mirror Tokens” of OpenAI (rOpenAI) have been offered to the public, with the allocation filled. Republic is utilizing Reg CF for the offering. Mirror tokens are digital assets designed to reflect the value of private shares. Republic anticipates creating the mirror tokens tied to shares in a private firm it holds.
Robinhood, a digital brokerage that offers both traditional and alternative assets to investors, is seeking to do the same.
When Robinhood’s intent to tokenize shares of OpenAI was revealed, the company issued a note of caution, warning they must approve any transfer of shares.
Friar mostly dodged the question, stating it is great to see the investor interest, but they are very mindful of keeping control of their cap table.
“We have strict transfer rules,” said Friar.
She added that an initial public offering would democratize access to the shares while indicating there was no intent to go public in the distant future. Friar said they can raise the money they need as a private company.
And hence the enigma of excluding smaller investors from private markets, which discriminates against individuals based on affluence, rather than allowing based on acumen.
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