OpenAI edges closer to becoming a for-profit company: Bloomberg
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The news: ChatGPT maker OpenAI is progressing efforts to transition its non-profit structure into a for-profit business by having preliminary discussions with regulators, Bloomberg reported.
The context: The company is in early talks with the California attorney general’s office over the process to change its corporate structure, according to two people familiar with the matter.
The process is likely to involve regulators scrutinising how OpenAI values a portfolio of highly lucrative intellectual property, such as its ChatGPT app.
The attorney general in Delaware also has been in communication about the nonprofit to for-profit shift, as detailed in a letter to OpenAI.
OpenAI, founded in 2015 as a nonprofit research organisation, is considering a significant shift toward a more conventional for-profit structure, thought to be a more attractive to investors.
OpenAI declined to comment on talks with regulators, but said that the non-profit would continue to exist in any potential corporate restructure.
In September, Reuters reported that OpenAI was working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board.
What they said: "While our work remains ongoing as we continue to consult independent financial and legal advisors, any potential restructuring would ensure the nonprofit continues to exist and thrive, and receives full value for its current stake in the OpenAI for-profit with an enhanced ability to pursue its mission," OpenAI nonprofit board chair Bret Taylor said in a statement to Bloomberg News.
The source: Bloomberg
