The startup known for personalized celebrity videos is suing OpenAI for naming its virtual likeness feature "Cameo" in the Sora app.

The company assured state officials that it would stay in California as it continues its global expansion, which could include a public offering as soon as 2027.

OpenAI established a for-profit arm valued at $500 billion Tuesday, doing so through a long-anticipated corporate restructure that provides Microsoft with a large stake in the new company as it looks to expand on its rapidly expanding artificial intelligence offerings.

OpenAI has since gone on a deal spree with a host of other major tech players leading to speculation that an AI bubble may be in the offing. The revised deal extends Microsoft's rights to OpenAI's AI models through to 2032 but excludes consumer hardware. OpenAI brought AI to the mainstream user in 2022 with the introduction of ChatGPT.

OpenAI has completed its recapitalization, splitting the AI lab into a for-profit corporation nested inside a non-profit foundation.

The artificial intelligence company said that the nonprofit that controlled the organization would receive a $130 billion stake in the new company.

CNBC's MacKenzie Sigalos joins 'Closing Bell Overtime' to report on OpenAI's newly finalized restructuring. Microsoft now holds a 27% stake worth $135 billion, while OpenAI commits $250 billion in future Azure spend and reshuffles IP rights in the updated partnership.