Overview

• A coalition of ex-OpenAI employees, Nobel laureates, and advocacy groups has petitioned California and Delaware attorneys general to block OpenAI’s proposed for-profit conversion.
• The group argues that the move risks undermining OpenAI’s founding mission of prioritizing public benefit over profit motives, especially in managing advanced AI technology.
• Elon Musk’s federal lawsuit challenging the restructuring, filed last year, is moving toward trial in the coming months, adding legal pressure to the debate.
• OpenAI leaders assert that the restructuring is necessary to secure a $40 billion investment round and ensure competitiveness with rivals like Google and Microsoft.
• California and Delaware attorneys general are reviewing the proposal, which requires their approval under laws governing nonprofit asset transfers to for-profit entities.