OpenAI in talks with California regulators to move toward becoming a for-profit company

OpenAI is in preliminary discussions with regulators to move the $157 billion company’s nonprofit structure into a for-profit business. The company is in preliminary talks with the California attorney general’s office about the process of changing its corporate structure, according to two people familiar with the matter. The process could involve regulators reviewing how OpenAI values ​​its lucrative intellectual property portfolio, such as its ChatGPT app. The Delaware attorney general has also been in communication about its nonprofit-to-for-profit transition, which was detailed in a letter to OpenAI. Founded in 2015 as a nonprofit research organization with an aspirational mission to build AI that is safe and beneficial to humanity, OpenAI is considering a major shift to a more traditional for-profit structure. The streamlined for-profit structure is seen as more attractive to investors, although it could raise questions about whether the company is sticking to its original public mission of doing good. OpenAI declined to comment on its talks with regulators but said the nonprofit would continue to exist in any potential corporate restructuring. Bret Taylor, chairman of the OpenAI nonprofit board, said in a statement: "While our work remains ongoing and we continue to consult with independent financial and legal advisors, any potential restructuring will ensure that the nonprofit continues to exist and thrive, captures the full value of its existing stake in the OpenAI for-profit, and enhances its ability to achieve its mission." (Bloomberg)