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OpenAI is progressing with plans to transition from a nonprofit structure to a for-profit entity, engaging in preliminary discussions with regulators. 

The $157 billion company, known for its development of artificial intelligence technologies like ChatGPT, is in early talks with the California attorney general’s office to change its corporate structure, as reported by Bloomberg. 

This process is expected to involve scrutiny of how OpenAI values its lucrative intellectual property portfolio.

Additionally, the attorney general in Delaware has communicated with OpenAI regarding the nonprofit-to-for-profit shift, as detailed in a letter to the company. OpenAI is contemplating this significant shift to attract more investment.

While OpenAI declined to comment on discussions with regulators, the company affirmed that the nonprofit entity would continue to exist post-restructuring. 

"Our work remains ongoing as we consult independent financial and legal advisors. Any restructuring would ensure the nonprofit continues to exist and thrive," said Bret Taylor, chairman of OpenAI’s nonprofit board.

According to the report, the company is also discussing its restructuring plans with Attorney General Rob Bonta’s office in California. A spokeswoman for Bonta’s office stated they are "committed to protecting charitable assets for their intended purpose," without commenting on specific discussions.

OpenAI aims to convert to a public benefit corporation, which would allow it to maintain its mission for social good while operating as a for-profit business. This new structure would preserve a nonprofit arm owning a significant stake in the for-profit entity. Legal experts emphasize that regulatory approval will hinge on how OpenAI’s assets are valued and ensuring that they are appropriately allocated to charitable causes.