It is disappointing that the outcome of this is that Altman and co are basically going to steal a nonprofit's IP and use it at a competitor. They took advantage of the goodwill of the public and favorable taxation in order to develop the technology; now that it's ready, they want to privatize the profit. It looks like this was the plan all along, and it's very strange to me that a nonprofit is allowed to have a for-profit subsidiary.
I would hope the California AG is all over this whole situation. There's a lot of fishy stuff going on already, and the idea that nonprofit IP / trade secrets are going to be stolen and privatized by Microsoft seems pretty messed up.