OpenAl's promise to stay in California helped clear the path for its IPO

Nearly two weeks ago, OpenAI Chief Executive Officer Sam Altman sat down for a call with California Attorney General Rob Bonta to deliver a simple message: He really wanted OpenAl to stay in California.

- Keach Hagey & Berber Jin

Company assured state officials on its commitment as it continues its global expansion, which could include a public offering as soon as 2027.

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Behind it was a subtle threat. As Bonta weighed whether to bless OpenAl’s controversial conversion to a more traditional company structure , OpenAl had spent months making the case that it was the economic heart of the California economy—and would be willing to leave if Bonta blocked its plan to convert to a simpler corporate structure.

Altman’s message was that he was committed to his home state and wouldn't sue it or leave it as some others—such as his rival Elon Musk—had done. The discussion proved decisive, ending an extended investigation by Bonta’s office marked by furious public lobbying from Openal’s critics. When the final deal was done, it included a pledge for OpenAl to remain in California and expand its presence there.

The agreement, made final Monday evening, allows OpenAl to move forward with a new corporate structure that paves the way for a blockbuster public listing that could arrive as soon as 2027, some of the people said. It would be one of the biggest initial public offerings in history. The discussions have been preliminary, and a public listing could ultimately happen later or be scrapped, the people said. Altman said Tuesday that an IPO is likely but that the company doesn’t have specific plans on timing.