OpenAI in talks with regulators to transform into for-profit company

Chat GPT developer OpenAI is reportedly in preliminary discussions with regulators in California and Delaware to convert into a for-profit company.
Bloomberg cited inside sources on the 5th (local time) as saying that OpenAI had filed suit against California Attorney General Rob Bonta.
The company has reported that it has begun discussions with the Delaware Attorney General's Office and the Open AI company.
Its value is estimated at about $157 billion. Reuters reported in September that OpenAI was planning to restructure its core business under a for-profit corporate structure rather than a non-profit board.
However, the main challenge is to value OpenAI's intellectual property rights, including the highly profitable large language model chatbots.
This process is complicated and lengthy due to California law requiring that any value added to nonprofit assets be allocated for charitable purposes.
Open AI's main asset is intellectual property rights, but a simplified for-profit structure is likely to be more attractive to investors than a non-profit research institute.
Such a transition raises questions about whether OpenAI, which was founded in 2015, will continue to adhere to its original public-led mission of building AI products that are safe and beneficial to humanity.
In May 2023, Elon Musk announced that OpenAI would be ready to convert to a for-profit company after investing $50 million in the company.
"OpenAI was founded as an open source non-profit company to counter Google, but now it is effectively a private company," he said.
"It's the largest closed-loop company dominated by Microsoft," Musk said. In February 2024, he and CEO Sam Altman announced their merger.
Altman for breach of contract, but withdrew the lawsuit in June.