California Bill to Block OpenAI’s For-Profit Move Gutted (1)

California legislation that would have blocked OpenAI Inc. from converting to a for-profit entity was quietly gutted by the lawmaker sponsoring the bill.

The measure (AB 501), amended April 3 without announcement, no longer contains any of the original language on startup venture capital nonprofits, which would apply to OpenAI. It was rewritten to deal only with liens on aircraft.

The move marks the end of the line for a short-lived effort to block OpenAI’s unusual move to restructure so it can attract more investment to build its most powerful models.

The office of Assemblymember Diane Papan (D), ...