With increasing political resistance, Openai executives are discussing potential relocation from California, threatening the company’s efforts to transition from nonprofits to for-profit status. According to WSJalthough the company said it had no plans to leave.
California’s attorney general is investigating whether Openai’s restructuring violates state charitable trust laws, while nonprofits, workforce groups, charities and even rival Meta’s alliances are opposing the conversion. Openai has about $19 billion in funding to be associated with this restructuring – if it doesn’t happen, investors may walk away, which would be disastrous for ChatGpt Maker.
It would be especially amazing to move Openai out of state given CEO Sam Altman’s in-depth connection with the Bay Area. After Lurie was elected last year, he served on the transition team of San Francisco Mayor Daniel Lurie, who reportedly owned at least four homes in San Francisco and another in the Napa Valley. Such a move will also face significant logistical challenges, as OpenAI’s AI researchers are concentrated in San Francisco.
The company continues to work with state and Delaware lawyers in the restructuring process; at the same time, regulatory pressures have increased Openai’s existing challenges, including escalating participation in the AI talent war.
