The Attorney General of Delaware has engaged an investment bank to provide counsel on OpenAI’s transition to a for-profit entity, as reported by the Wall Street Journal on Wednesday. This independent assessment may potentially prolong the transition process or create additional complications for OpenAI’s plans.

The conversion of OpenAI to a for-profit organization is expected to facilitate the attraction of new investments and ultimately lead to an initial public offering. However, prior to proceeding, the company must obtain approval from state regulatory bodies. While OpenAI and Microsoft have already appointed their own investment banks to advise on the transaction, the Delaware Attorney General is now seeking an independent evaluation of the equity that OpenAI’s nonprofit arm will receive as part of the deal.

Regulatory authorities appear to be focusing on a crucial aspect of OpenAI’s conversion, which could substantially impact the final cost incurred by the company to simplify its structure. According to corporate governance experts, Elon Musk’s $97.4 billion takeover bid for OpenAI, although promptly rejected, may have increased the valuation of OpenAI’s nonprofit, thereby potentially influencing the price of its for-profit conversion.