Delaware AG Investigates OpenAI's For-Profit Transition
Delaware's attorney general has hired an investment bank to provide an independent assessment of OpenAI's proposed restructuring plan, according to a Wall Street Journal report. This move could impact the timeline of OpenAI's transition to a for-profit entity.
OpenAI's restructuring aims to attract further investment and pave the way for a future initial public offering (IPO). However, the company requires approval from state regulators, including Delaware's attorney general, before proceeding.
While OpenAI and Microsoft have already engaged their own investment banks for advisory services, the Delaware attorney general is seeking an independent evaluation of the equity OpenAI's nonprofit arm will retain. This scrutiny focuses on a key element of the restructuring, potentially affecting the overall cost for OpenAI.
Elon Musk's Bid and its Potential Impact
Experts suggest Elon Musk's previous $97.4 billion takeover bid for OpenAI, despite being rejected, may have influenced the valuation expectations for the nonprofit portion. This could complicate OpenAI's efforts to streamline its structure.
The independent evaluation by the Delaware attorney general's chosen investment bank will likely prolong the restructuring process. It remains to be seen how this assessment will impact OpenAI's plans for future investment and its eventual public offering.
