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The singer recently bought back her previously unreleased music from her former manager, Bob Leone, before it went to auction, Reuters reported.
Lady Gaga now has control over a part of her past.
Gaga purchased the music—consisting of six CDs, along with a DVD—from Leone for an undisclosed sum. The items, some of them autographed, also include a 2002 demo recording when the pop star was known only as Stefani Germanotta.
The songs were originally slated to be auctioned off online through GOTTA HAVE IT! Collectibles, Inc., with minimum bids at $1,000 for each item.
"She wanted to purchase them. We sent her an offer on behalf of Bob Leone. She countered and we made a deal," said company co-founder Peter Siegel, who also said that Leone never had the intention of duplicating the items.
"I feel sorry for Lady Gaga -- she's just a plastic doll generated by the music money marketing machine," Apps said in a statement. "This contest gives people a chance to choose which they prefer -- plastic or real."
Each singer would perform a set of songs. The contest would occur either at Madison Square Garden or in London’s O2 Arena.
Gaga hasn’t responded to the challenge so far, according to Billboard. However, Apps later told the publication that this is not a publicity stunt.
"For me, it's more of an intellectual competition. [Gaga's] fans, in particular, are making this into an ego thing."
Apps didn’t make clear of who would offer the prize money.