Robinhood CEO Defends OpenAI Token Offering After Firm’s Warning, EU Scrutiny

Robinhood CEO Vlad Tenev has defended the company's controversial tokenized stock offering linked to OpenAI, saying the structure gives retail investors valuable exposure even if the tokens do not represent actual equity, CNBC reported. The remarks come after OpenAI publicly distanced itself from the product and EU regulators began reviewing its compliance.

OpenAI: No Approval Given for Equity Representation

Last week, OpenAI issued a warning on X, stating that Robinhood’s tokens do not represent actual shares in the company and that any transfer of OpenAI equity requires prior approval, something the AI firm said it never granted.

Robinhood launched the product as part of its broader effort to allow EU-based users access to synthetic exposure in high-profile U.S. companies, including private firms.

“Not Technically Equity, but Still Exposure”

Speaking on CNBC’s Squawk Box Europe on Tuesday, Tenev acknowledged that the tokens are not technically equity but argued that this distinction is not the most important factor.

However, he said that what was important was that retail customers have an opportunity to get exposure to this asset, referring to OpenAI and other private firms. He added that OpenAI’s structure already allows for indirect institutional exposure through instruments that convert to equity under certain conditions.

Robinhood said its OpenAI tokens are backed by a stake in a special purpose vehicle (SPV), which is designed to provide synthetic exposure rather than direct ownership. This structure enables users to participate in the performance of hard-to-access private firms without holding traditional shares.

Lithuanian Regulator Seeks Clarification

The Bank of Lithuania, which oversees Robinhood’s EU operations, said it is assessing the legality of the token product following OpenAI’s public statement.

He added that information given to investors “must be provided in clear, fair, and non-misleading language.” In response, Tenev said the company will work with regulators and emphasized that Robinhood anticipated questions. “Since this is a new thing, regulators are going to want to look at it,” he said.

The situation highlights the regulatory uncertainty surrounding new financial instruments offering access to private markets. While Robinhood markets the tokens as a way to democratize exposure to growth companies, the dispute with OpenAI and the involvement of EU regulators suggest a longer road ahead in proving the model's legitimacy.