Overview
- OpenAI faces formal investigations by California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings into its proposed restructuring plan.
- The company's December 2024 proposal seeks to convert its capped-profit subsidiary into a public benefit corporation, transferring control from its nonprofit arm.
- Critics, including AI experts and former OpenAI researchers, warn the move could weaken safeguards ensuring artificial general intelligence (AGI) benefits humanity.
- A $40 billion funding round finalized in March ties investor withdrawal rights to the restructuring, with up to $20 billion at risk if the plan fails by year-end.
- Elon Musk’s legal challenge to block the restructuring continues, though his March injunction bid was denied due to lack of standing.