Sam Altman-led OpenAI is in early talks with the California Attorney General’s Office change its corporate structure In an effort to become a profitable business, Bloomberg News reported on Monday, citing two people familiar with the matter.
OpenAI and a representative of the California attorney general did not immediately respond to Reuters requests for comment.
Becoming a for-profit company would drastically change the governance structure for the AI pioneer, which was founded in 2015 as a nonprofit AI research lab. However, the move will make the company more attractive to investors.
Reuters first reported in September that Microsoft-backed OpenAI was working on plans to reorganize its core business into a for-profit corporation that would no longer be governed by its nonprofit board.
OpenAI will continue to exist as a non-profit and will have a minority stake in the for-profit company, sources told Reuters.
Last month, the ChatGPT maker closed a $6.6 billion funding round, which could The company is valued at $157 billion and cemented its position as one of the world’s most valuable private companies.
