**Delaware AG Reviews OpenAI’s For-Profit Shift**

Delaware’s attorney general is seeking an independent evaluation of OpenAI’s transition to a for-profit entity, according to a report from The Wall Street Journal. The review could complicate the company’s restructuring plans, potentially delaying its ability to attract new investors or pursue a public offering.

### Why the Review Matters

OpenAI’s shift to a for-profit model is designed to facilitate new funding opportunities and a potential future IPO. However, the company must first secure regulatory approval from Delaware, where it is incorporated. While OpenAI and its partner Microsoft have enlisted financial advisors to guide the transition, state regulators are now scrutinizing the deal’s fairness—particularly the valuation of OpenAI’s nonprofit assets.

### Potential Roadblocks for OpenAI

Corporate governance experts suggest that Elon Musk’s $97.4 billion takeover bid for OpenAI—though swiftly rejected—may have inadvertently raised the perceived value of the company’s nonprofit structure. This could influence the final cost of restructuring, making the process more complex and expensive.

The Delaware AG’s independent assessment could prolong regulatory approval, adding uncertainty to OpenAI’s strategic plans. If regulators determine that the nonprofit’s stake is undervalued, OpenAI may need to adjust its financial arrangements before proceeding.

### What’s Next for OpenAI?

As the review unfolds, OpenAI’s leadership will need to navigate regulatory scrutiny while maintaining investor confidence. The outcome could set a precedent for how tech companies balance profit-driven growth with their original nonprofit missions.

For now, the company’s ambitions—including AI advancements and potential public market entry—hinge on Delaware’s assessment of its restructuring strategy.