"As the Wall Street Journal reports today, via unnamed sources close to the company, OpenAI executives are reportedly discussing a "last-ditch" option to preserve their plans, which would be relocating out of the state of California. A spokesperson for the company quoted by the Journal denies that this is under consideration. But the paper's source suggest that executives have floated the idea of a move out of state if things get worse with the AG's investigation."
"calling it illegal, and OpenAI's Sam Altman quickly published some emails from Musk in previous years that showed him approving of the for-profit move and the need for investment. The feud has spilled over into a court case in which OpenAI has accused Musk of defaming the company, but the issue of how the company can restructure has also drawn scrutiny from the California Attorney General's Office, and the attorney general in Delaware, where many companies register their businesses."
OpenAI was founded as a nonprofit and sought to transition into a public benefit corporation under California law, preserving social aims while allowing profit-making capacity. The restructuring aimed to unlock capital needed to build and operate increasingly data-hungry AI models. The proposal drew sharp public criticism from co-founder Elon Musk and led to the publication of past private messages. The dispute expanded into a defamation court case and attracted scrutiny from the California Attorney General and Delaware authorities. Labor and nonprofit groups opposed the move. Executives reportedly considered relocating out of California, though company spokespeople denied those plans. A denial of restructuring could jeopardize an estimated $19 billion in funding.
Read at sfist.com
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