Amlexanox for Type 2 Diabetes and Obesity

Inclusion Criteria: * ≥ 18 years old at baseline and \<60 years of age. * Is male, female not of childbearing potential, or meets all the following criteria if female of childbearing potential (including perimenopausal women who have had a menstrual period within one year): * Not breastfeeding. * Negative pregnancy test result (human chorionic gonadotropin, beta subunit \[βhCG\]) at baseline (not applicable to hysterectomized females). * Must practice and be willing to continue to practice appropriate birth control (defined as a method which results in a low failure rate when use consistently and correctly, such as implants, injectables, oral contraceptives, some intrauterine contraceptive devices, sexual abstinence, tubal ligation, or a vasectomized partner) during the entire duration of study period. * Has physician-confirmed diabetes mellitus with a clear diagnosis or per ADA criteria with fasting glucose\>126 mg/dL or HbA1c \>6.4% or 2 hour GTT \>200 mg/dL or or pre-diabetes with fasting glucose \>100 mg/dL (n= up to 8) * BMI ≥27 and \<36 kg/m2. * On no medications or only on first line oral medications (such as Metformin and/or DPP IV inhibitors) for treatment of type 2 diabetes mellitus with a stable regimen for \>12 weeks. * Alcohol consumption of less than 40 grams/week. * A liver US confirming presence of fatty infiltration of the liver. * Is able to read, understand and sign the U of M IRBMED approved informed consent form (ICF), communicate with study physician and study team, understand and comply with protocol requirements. Exclusion Criteria: * On insulin, sulfonylurea or other injectables for treatment of type 2 diabetes * Unable to conduct home based glucose monitoring * HbA1c\>9.5% * Presence of advanced liver disease (as evidenced by abnormal synthetic function, abnormal PT or albumin). * Evidence of other etiologies of viral hepatitis. * Presence of hematologic, bone marrow and/or other abnormalities. * Presence of hemoglobinopathy or other hematological abnormalities that will interfere with accurate measurement of HbA1c * Presence of HIV infection. * Inability to give informed consent. * Presence of ESRD, any type of active cancer, or \>class 2 congestive heart failure (New York Heart Association Functional Classification System), based on medical history and physical examination. * Active chronic infection such as known chronic osteomyelitis or tb, etc. (may be transient). * Creatinine \>1.5 mg/dL * Proliferative diabetic retinopathy, nonproliferative retinopathy is allowed * Unable to ambulate * Clinically relevant CAD: history of stent, CABG or cardiologist confirmed angina * Any other condition in the opinion of the investigators that may impede successful data collection.