OpenAI is in the early stages of discussions with the California Attorney General’s office regarding the transformation of its corporate structure into a commercial enterprise, according to Bloomberg, citing sources.
The process may involve regulatory scrutiny of how the AI startup evaluates intellectual property, the agency notes. The Delaware Attorney General has also engaged with the firm on this matter.
OpenAI declined to comment on the information, emphasizing that the nonprofit organization will continue to exist within any restructuring framework.
“[…] We continue to consult with independent financial and legal advisors. Any potential restructuring will allow the nonprofit organization to continue to exist and thrive, as well as to realize full value for its current stake in the commercial company OpenAI and expand opportunities to fulfill its mission,” stated Bret Taylor, chairman of the board of the nonprofit organization OpenAI.
In June, it was first reported that OpenAI intended to change its management structure to a commercial business. This would enable the company to generate profit while still pursuing its original goal of contributing to the public good.
In October, OpenAI raised $6.6 billion at a valuation of $157 billion. The company’s high valuation depended on its ability to alter its corporate structure and lift profit restrictions for investors. Approval from the nonprofit board, which includes Sam Altman and eight others, will be required to make this decision.
Back in August, Elon Musk renewed his legal battle against OpenAI, once again accusing the company of prioritizing commercial interests over the public good.