As per a Wall Street Journal report, executives at OpenAI are growing increasingly wary that the intensifying political scrutiny in California could impede their strategy to transition into a for-profit entity. Consequently, they have contemplated relocating their headquarters outside of California as a final recourse. Presently, OpenAI functions as a subsidiary devoid of traditional equity issuance and is overseen by a non-profit parent organization—a setup that has not found favor with investors.

Some of California's most prominent charities, non-profit entities, and labor unions have banded together to voice their opposition to OpenAI's restructuring initiative. They are urging the California Attorney General to guarantee that the newly formed company adheres to the state's charitable trust regulations. The Attorneys General of both California and Delaware are presently scrutinizing OpenAI's restructuring proposal.

OpenAI's financial supporters have tied roughly $19 billion in funding (constituting nearly half of its total financing over the past year) to the acquisition of shares in the newly established for-profit entity. Should the restructuring fail to materialize, these funds might be retracted, thereby obstructing OpenAI's significant investments in constructing expansive data centers, developing bespoke chips, and sustaining its leadership in AI research.