OpenAI, led by Sam Altman, is in early discussions with the California Attorney General's Office to change its corporate structure to become a for-profit company. Bloomberg News reported This was disclosed on Monday, citing two people familiar with the matter.
Representatives for OpenAI and the California attorney general did not immediately respond to Reuters' requests for comment.
The transition to a for-profit company will mark a significant shift in governance structure for AI Pioneer, which was founded in 2015 as a nonprofit AI research institute. However, the move could make the company more attractive to investors.
Reuters first reported in September that Microsoft-backed OpenAI was working on plans to restructure its core business into a for-profit corporation that would not be governed by a nonprofit board.
The nonprofit OpenAI will continue to exist, with a minority stake in the for-profit company, people familiar with the matter told Reuters.
Last month, the ChatGPT maker closed a $6.6 billion funding round that values the company at $157 billion and could solidify its status as one of the world's most valuable privately held companies.
