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OpenAI denies that it’s weighing a ‘last-ditch’ California exit amid regulatory pressure over its restructuring

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OpenAI denies that it’s weighing a ‘last-ditch’ California exit amid regulatory pressure over its restructuring

Sam Altman says that bots are making social media feel ‘fake’

Pinecone founder Edo Liberty discusses why the next big AI breakthrough starts with search, at TechCrunch Disrupt 2025

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In Brief Posted:

OpenAI executives are discussing a potential relocation out of California as increasing political resistance threatens the company’s efforts to convert from nonprofit to for-profit status, according to The WSJ, though the company says it has no plans to leave.

California’s attorney general is investigating whether OpenAI’s restructuring violates state charitable trust law, while a coalition of nonprofits, labor groups, philanthropies, and even rival Meta are pushing back against the conversion. OpenAI has about $19 billion in funding tied to this restructuring – if it doesn’t happen, investors could walk away, which would be catastrophic for the ChatGPT maker.

Moving OpenAI out of the state would be particularly stunning given CEO Sam Altman’s deep ties to the Bay Area. He served on San Francisco Mayor Daniel Lurie’s transition team following Lurie’s election last year and reportedly owns at least four homes in San Francisco and another in Napa Valley. Such a move would also face major logistical challenges, since OpenAI’s AI researchers are heavily concentrated in San Francisco.

The company continues working with state and Delaware attorneys general on the restructuring process; in the meantime, the regulatory pressure adds to OpenAI’s existing challenges, including competing in an escalating AI talent war.

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OpenAI denies that it’s weighing a ‘last-ditch’ California exit amid regulatory pressure over its restructuring Connie Loizos 38 seconds ago AI Sam Altman says that bots are making social media feel ‘fake’ Julie Bort 8 hours ago Startups Pinecone founder Edo Liberty discusses why the next big AI breakthrough starts with search, at TechCrunch Disrupt 2025 TechCrunch Events 11 hours ago X LinkedIn Facebook Instagram youTube Mastodon Threads Bluesky TechCrunchStaffContact UsAdvertiseCrunchboard JobsSite Map Terms of ServicePrivacy PolicyRSS Terms of UseCode of Conduct Sam AltmanDeep FissionCognition AIApple EventSpaceXTech LayoffsChatGPT © 2025 TechCrunch Media LLC.