California attorney general is investigating OpenAI’s conversion to a for-profit company

As part of what it described as an ongoing investigation, the California attorney general’s office has sought answers from OpenAI about its reported plan to convert to a for-profit corporation and how it intends to transfer assets out of its existing nonprofit.

In a letter sent to the ChatGPT maker Dec. 6, deputy attorney general Christopher Lamerdin cited clauses in OpenAI’s articles of incorporation under which “OpenAI’s assets are irrevocably dedicated to its charitable purpose,” as Lamerdin put it, as well as the office’s “responsibility to protect assets held in charitable trust.” In addition to asking about asset transfers, it sought information on OpenAI’s restructuring plan and the value of its assets.