WSJ Tech News Briefing TNB Tech Minute: OpenAI Execs Rattled by Campaigns to Derail For-Profit Restructuring
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Sep 9, 2025 OpenAI's controversial shift to a for-profit model has stirred debates amid political scrutiny. Meanwhile, Volkswagen plans a hefty $1.2 billion investment in artificial intelligence by 2030 to enhance vehicle development. Mistral AI's valuation surged to $14 billion after a significant investment from ASML, showcasing Europe's growing competition in the AI sector. It's a crucial time for AI innovation and investment!
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OpenAI Faces Regulatory Roadblocks
- OpenAI executives fear California political scrutiny could block their shift to a for-profit structure.
- They have discussed possibly moving the company out of California to avoid legal challenges.
Nonprofit Control Complicates Restructuring
- OpenAI is controlled by a non-profit but has sought to transition to a for-profit entity amid scrutiny.
- State nonprofits and labor groups have asked California's attorney general to investigate potential charitable trust violations.
Volkswagen's Big AI Bet
- Volkswagen will invest up to 1 billion euros by 2030 to expand AI across vehicle development and IT.
- The company expects AI integration could save up to 4 billion euros by 2035 and already runs 1,200+ AI applications.