The state’s attorney general asked the company how it plans to transfer assets out of its charitable nonprofit Attorney General Rob Bonta has asked OpenAI about its reported conversion to a for-profit company as part of an ongoing investigation. Bonta during a press conference in Sacramento on Sept. 26, 2023. Photo by Miguel Gutierrez Jr., CalMatters As part of what it described as an ongoing investigation, the California attorney general’s office has sought answers from OpenAI about its reported plan to convert to a for-profit corporation and how it intends to transfer assets out of its existing nonprofit. In a letter sent to the ChatGPT maker Dec. 6, deputy attorney general Christopher Lamerdin cited clauses in OpenAI’s articles of incorporation under which “OpenAI’s assets are irrevocably dedicated to its charitable purpose,” as Lamerdin put it, as well as the office’s “responsibility to protect assets held in charitable trust.” In addition to asking about asset transfers, it sought information on OpenAI’s restructuring plan and the value of its assets. The attorney’s general’s office wrote in an email to The Markup (part of CalMatters), “The Department of Justice is committed to protecting charitable assets for their intended purpose and takes this responsibility seriously.” The letter asked for a response from OpenAI by Jan. 8. Asked if the attorney general received such a response, a spokesperson wrote, “To protect its integrity, we’re unable to comment on an ongoing investigation.” OpenAI did not answer questions on the record about the letter or its structure…California Is Investigating OpenAI’s Conversion To a For-Profit Company

The state’s attorney general asked the company how it plans to transfer assets out of its charitable nonprofit Attorney General Rob Bonta has asked OpenAI about its reported conversion to a for-profit company as part of an ongoing investigation. Bonta during a press conference in Sacramento on Sept. 26, 2023. Photo by Miguel Gutierrez Jr., CalMatters As part of what it described as an ongoing investigation, the California attorney general’s office has sought answers from OpenAI about its reported plan to convert to a for-profit corporation and how it intends to transfer assets out of its existing nonprofit. In a letter sent to the ChatGPT maker Dec. 6, deputy attorney general Christopher Lamerdin cited clauses in OpenAI’s articles of incorporation under which “OpenAI’s assets are irrevocably dedicated to its charitable purpose,” as Lamerdin put it, as well as the office’s “responsibility to protect assets held in charitable trust.” In addition to asking about asset transfers, it sought information on OpenAI’s restructuring plan and the value of its assets. The attorney’s general’s office wrote in an email to The Markup (part of CalMatters), “The Department of Justice is committed to protecting charitable assets for their intended purpose and takes this responsibility seriously.” The letter asked for a response from OpenAI by Jan. 8. Asked if the attorney general received such a response, a spokesperson wrote, “To protect its integrity, we’re unable to comment on an ongoing investigation.” OpenAI did not answer questions on the record about the letter or its structure…California Is Investigating OpenAI’s Conversion To a For-Profit Company