OpenAI executives have privately discussed the possibility of relocating the company outside California due to political and regulatory pressure over its planned restructuring, according to a report from The Wall Street Journal.
The artificial intelligence developer is seeking to shift from its current nonprofit-controlled governance model to a for-profit structure.
That transition has attracted opposition from California’s attorney general and other regulators, who are investigating whether the move could violate state nonprofit and charitable trust laws.
A coalition of nonprofits, philanthropies, labor groups, and rival technology companies, including Meta, has also voiced concerns that the restructuring could undermine OpenAI’s original mission.
The report said OpenAI’s leadership has considered relocation as a last-resort option if legal and political hurdles in California block or significantly delay the restructuring.
The company’s ability to access approximately $19 billion in pledged investor funding is tied to completing the change.
Without those funds, OpenAI could face setbacks in financing data centers, developing custom chips, and supporting ongoing artificial intelligence research.
Despite these internal discussions, OpenAI has publicly stated that it has no active plans to move out of California.
The company said it continues to work with regulators and stakeholders to address concerns and maintain commitments made under its existing governance model.