OpenAI in talks with California to become for-profit company, Bloomberg News reports

(Reuters) – Sam Altman-led OpenAI is in early talks with the California attorney general’s office to change its corporate structure in a bid to become a for-profit business, Bloomberg News reported on Monday, citing two people familiar with the matter.

OpenAI and a representative for the California Attorney General did not immediately respond to Reuters’ requests for comment.

A shift to being a for-profit company would mark a drastic reversal in governance structure for the AI pioneer, which was founded in 2015 as a non-profit AI research lab. However, the move would make the firm more attractive to investors.

Reuters first reported in September that Microsoft-backed OpenAI was working on a plan to restructure its core business into a for-profit benefit corporation no longer governed by its non-profit board.

The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, sources then told Reuters.

Last month, the ChatGPT maker closed a $6.6 billion funding round, which could value the company at $157 billion and cement its position as one of the most valuable private companies in the world.