OpenAI is engaged in preliminary discussions with regulators in California and Delaware to transition the company into a for-profit entity, aiming to enhance its appeal to investors. The organization, which is valued at $157 billion, is reportedly negotiating with California's Attorney General Rob Bonta and his Delaware counterpart. The discussions arose following earlier reports of OpenAI's plans to restructure its business model, moving away from its original non-profit structure. A major challenge in this transition is appropriately valuing OpenAI's intellectual property, particularly its valuable large language models, without violating California law regarding the distribution of nonprofit assets. Critics, such as Elon Musk, have expressed concerns that this change may dilute OpenAI's original mission to develop safe and beneficial AI technologies. However, OpenAI's nonprofit board chairman stated that any new corporate structure would continue to support the nonprofit's mission, ensuring that it receives full value from its for-profit venture. The firm had previously created a capped for-profit subsidiary in 2019 to tackle the expenses associated with AI model development.

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