Artificial intelligence model developer OpenAI is set to become a for-profit company next year, and has published plans for how it will transition from a non-profit organization to a Public Benefit Corporation (PBC).
Artificial intelligence model developer OpenAI is set to become a for-profit company next year, and has published plans for how it will transition from a non-profit organization to a Public Benefit Corporation (PBC).
In 2025, OpenAI plans to become a «public benefit corporation,» a for-profit company that «works for the benefit of society.» This unit will «manage and oversee OpenAI’s operations and business,» while the non-profit OpenAI organization will retain a stake in the business but lose its oversight role, The Verge reports.
The nonprofit will operate separately with its own team of executives and staff «to pursue philanthropic initiatives in sectors such as healthcare, education, and science.» The board said the structure would allow OpenAI to «raise the capital needed» to build artificial general intelligence, as well as create «one of the most well-resourced nonprofits in history.» OpenAI’s competitors, including Anthropic and Elon Musk’s xAI, also operate as PBCs.
It was previously reported that OpenAI was preparing to restructure into a commercial structure built around ChatGPT to attract investors. Later it became known that it had attracted $6.6 billion in investment. In September, Bloomberg reported that CEO Sam Altman would receive about 7% in shares as part of OpenAI’s plans to become a commercial company, but Altman denied this.
«The hundreds of billions of dollars that large companies are now investing in AI development show what is really needed for OpenAI to continue to fulfill its mission. We need to raise more capital again than we could have imagined. Investors want to support us, but with this scale of capital, we require common equity and less structural closure,» OpenAI said.
Under the structure outlined by OpenAI’s board, the nonprofit would receive shares in PBC «at a fair valuation determined by independent financial advisors.» Concerns about maintaining control over OpenAI’s nonprofit board arose last year when its members ousted Altman, but later reinstated him.
Last month, Elon Musk filed a motion to stop OpenAI from becoming a for-profit company, and Meta CEO Mark Zuckerberg asked California Attorney General Rob Bontu to block the transition.
Recall that on December 26, there was a large-scale failure in the operation of ChatGPT and Sora. From 20:40 Kyiv time, problems began in the operation of ChatGPT, Sora and some APIs. According to OpenAI, the issue was hidden on the side of their provider.
