The artificial intelligence company is looking to restructure so it can draw more financing and aim for a future public listing, but regulations in Delaware present a crucial hurdle. The state’s approval is essential before the transition can proceed, and officials want to ensure the arrangement fairly values the equity reserved for OpenAI’s original nonprofit entity.
OpenAI itself, along with major investor Microsoft, has already retained advisers in the shape of large investment banks to steer the restructuring process. Still, the review by the Delaware attorney general will be an independent one, separate from the advice sought by the company and its partners.
Regulatory Scrutiny Grows
Those involved with the deal believe that regulators are specifically focusing on what the nonprofit arm will receive as OpenAI formalizes its profit making ambitions. The final price tag of this equity transfer could end up being a decisive element in whether state officials grant their consent.
Observers say that a recent move by Elon Musk might have complicated matters by affecting the perceived value of OpenAI. Musk, a previous backer and now a critic, reportedly put forward an offer to acquire OpenAI at a valuation near $97 billion, although OpenAI showed no interest in accepting.
Corporate law specialists suggest that this rejected offer might have set a difficult benchmark, potentially raising expectations for the nonprofit’s stake even if the bid itself was rebuffed. For OpenAI, this means more attention than ever from regulators before it can make its next move toward the stock market. Read more about artificial intelligence company restructuring.
