07:42 AM EDT, 09/09/2025 (MT Newswires) -- Microsoft ( MSFT )-backed (MSFT) OpenAI executives are increasingly concerned that political pressure in California that could derail their plan to become a for-profit company and have discussed relocating out of the state as a last-resort option, The Wall Street Journal reported Monday, citing sources it didn't identify.

Philanthropies, nonprofits, and labor groups have urged regulators to ensure the restructuring doesn't violate California's charitable trust law, according to the report. Attorneys general in California and Delaware are investigating the company's restructuring plan and have the power to sue OpenAI or demand a settlement as a condition for restructuring, the newspaper reported.

An OpenAI spokesman told the WSJ the company has no plans to leave California. "We continue to work constructively with the offices of the Attorneys General of California and Delaware," the spokesman who wasn't identified told the paper.

OpenAI did not immediately respond to requests for comment from MT Newswires. The WSJ said that OpenAI was founded in 2015 as a non-profit, but created a for-profit unit that allowed it to receive investments from companies including Microsoft ( MSFT ).

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