OpenAI, currently structured as a nonprofit artificial intelligence research organization, is reportedly initiated discussions with the California attorney general's office in the hopes of making the shift to a for-profit model.
Backed by Microsoft (MSFT, Financials), the $157 billion company can come under regulatory hot fire as it evaluates the value of its intellectual property, including ChatGPT.
As OpenAI investigates the restructure, the office of Delaware attorney general has also been in correspondence with it.
Originally established as a charity in 2015, OpenAI has changed its financial approach in past years. It created a capped for-profit entity in 2019 to help with the expenses of developing AI models. This change is meant to draw additional funding while keeping a nonprofit arm with a substantial stake in the for-profit company. Chief Jason Kwon of Strategy informed staff members the new arrangement will protect the interests of the nonprofit.
Emphasizing that any change will seek to maintain the nonprofit's objective and provide full value for its interest in the for-profit unit, Bret Taylor, the board chairman of OpenAI confirmed continuous consultations with financial and legal advisers over the restructure.
