California Monitors OpenAI’s Commitment to Public Mission Amid Microsoft Restructuring Deal

Microsoft's revised agreement with OpenAI, granting the tech giant a 27% stake in a new for-profit entity overseeing the AI startup, has drawn significant scrutiny. California's government, where OpenAI is headquartered, played a pivotal role in approving the arrangement.

State Attorney General Rob Bonta emphasized ongoing oversight to ensure OpenAI adheres to its original nonprofit mission of advancing artificial general intelligence for humanity's benefit. "We will be keeping a close eye on OpenAI to ensure ongoing adherence to its charitable mission and the protection of the safety of all Californians," Bonta stated, noting concessions were secured during negotiations.

The Attorney General's office conducted an 18-month investigation into OpenAI's initial for-profit transition. As part of the agreement, OpenAI committed to maintaining its California operations, preserving its public-benefit foundation while navigating commercial partnerships.