OpenAI Secures California Deal Allowing Corporate Conversion And Paving The Way For A Potential IPO As Early As 2027

Benzinga

OpenAI reached a deal with California Attorney General Rob Bonta to finalize its conversion to a for-profit model while remaining headquartered in the state. The agreement keeps OpenAI under oversight from the OpenAI Foundation and state regulators, ensuring governance transparency as it prepares for a potential IPO by 2027.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02OpenAI reached an agreement with California Attorney General Rob Bonta

00:05longing to complete its corporate conversion and remain headquartered in the state,

00:09according to the Wall Street Journal.

00:10He'll end up with negotiations over whether the company could shift from a non-profit

00:13controlled structure to a for-profit model.

00:16In return for Bonta's approval, OpenAI agreed to remain under oversight from the OpenAI

00:20Foundation and the Attorney General's office,

00:23obtaining board independence, providing advance notice of major structural changes.

00:26CEO Sam Alvin said the company's commitment to California was key to the resolution,

00:31paving the way for a potential IPO as early as 2027.

00:35For all things money, visit Benzinga.com.

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