California Bill Would Block OpenAI From For-Profit Conversion

A California lawmaker is sponsoring a measure (AB 501) to prevent OpenAI from converting to a for-profit entity.

Assemblymember Diane Papan (D) filed the legislation Monday. While it doesn’t mention OpenAI in the text, it would apply to startup venture capital nonprofits that have at least $100 million in combined revenue during any five-year period.

The measure would prevent such nonprofits from transferring a substantial amount of their assets—defined as a cumulative market value of more than $100 million—in a sale. It also would prevent them from converting into a mutual benefit corporation, public benefit corporation, business corporation, ...