Openai denies weighing out of the « last moat » against the background of regulatory pressure over its restructuring

Openai leaders are discussing a potential relocation outside California, as increasing political resistance threatens the company’s efforts to transform non -profit in profit status, according to WSJ, although the company says there is no plans to leave.

California General Prosecutor is investigating whether Openai restructuring violates the State Law on Charity Trust, while a coalition of non -profit organizations, labor groups, philanthrops and even competitive meta withdraw against the turn. Openai has about $ 19 billion in funding, linked to this restructuring – if that does not happen, investors can move away, which would be catastrophic for the Chatgpt manufacturer.

Moving Openai from the state would be particularly stunning, given the deep ties of the Executive Director Sam Altman with the bay area. He serves in the transitional team of San Francisco Mayor Daniel Luri after Luri’s election last year and according to reports he has at least four homes in San Francisco and another in the Napa Valley. A similar move would also face major logistical challenges, as OPENAI’s AI researchers are highly concentrated in San Francisco.

The company continues to work with the General Lawyers of the State and Delaware in the restructuring process; Meanwhile, regulatory pressure adds to Openai’s existing challenges, including competing in an escalating war of AI talents.