A group of OpenAI employees and attorneys general from California and Delaware are taking legal action to prevent OpenAI from converting from a nonprofit to a for-profit entity. The lawsuit alleges that the conversion process violated laws governing nonprofits and charitable organizations. The legal challenge focuses on OpenAI’s 2019 restructuring when it transitioned from a nonprofit to a “capped profit” company. California Attorney General Rob Bonta argues that OpenAI’s board of directors failed to obtain necessary approvals and violated their fiduciary duties during this conversion. The lawsuit seeks to ensure proper oversight of charitable assets and maintain transparency in OpenAI’s operations. This legal action comes amid growing concerns about the governance and direction of OpenAI, particularly following the controversial dismissal and subsequent reinstatement of CEO Sam Altman in November 2023. The case highlights the broader debate about balancing AI development’s commercial interests with its original mission of ensuring artificial intelligence benefits humanity. The attorneys general are requesting court supervision of OpenAI’s assets and operations to protect the public interest. This development represents a significant challenge to OpenAI’s corporate structure and could have implications for how AI companies balance profit motives with their ethical obligations and public benefit missions.