Delaware attorney general reportedly hires a bank to evaluate OpenAI's restructuring plan

Delaware’s attorney general is seeking an independent evaluation of OpenAI’s for-profit conversion, potentially complicating the startup's plans to attract new investment and eventually go public. This move could delay the transition as state regulators need to approve the conversion. Although OpenAI and Microsoft have already hired investment banks for advice, the independent evaluation will focus on the equity that OpenAI’s nonprofit will receive.

Regulators are concentrating on a crucial aspect of OpenAI’s conversion, which could impact the cost of simplifying its structure. Corporate governance experts suggest that Elon Musk's $97.4 billion takeover bid, which OpenAI rejected, may have influenced the valuation of OpenAI’s nonprofit. This scrutiny could affect the overall price OpenAI pays in its transition to a for-profit entity.

Key takeaways

Delaware’s attorney general is hiring an investment bank for an independent evaluation of OpenAI’s for-profit conversion.
This evaluation could delay OpenAI's transition to a for-profit entity and affect its plans to attract new investment and go public.
OpenAI and Microsoft have already hired investment banks, but state regulators require an independent assessment of the equity involved.
Elon Musk's $97.4 billion takeover bid, although rejected, may have influenced the valuation of OpenAI’s nonprofit.

Delaware attorney general reportedly hires a bank to evaluate OpenAI's restructuring plan | TechCrunch

Key takeaways

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