OpenAI is set to transform into a public benefit corporation next year, aiming to increase control and flexibility in its operations and business. The company’s current non-profit parent will hire a leadership team for charitable initiatives, while the new public benefit corporation will run and control OpenAI’s day-to-day activities.
The shift comes as OpenAI seeks to raise more capital to fund its pursuit of artificial general intelligence (AGI), a goal that has attracted significant investment. The company recently secured $6.6 billion in funding, valuing it at $157 billion. Microsoft, the largest investor, holds a 49% stake.
OpenAI’s transformation is part of an effort to attract more conventional investors and increase its competitiveness in the generative AI space. Its rivals, including Anthropic and Elon Musk-owned xAI, already use a public-benefit-corporation structure.
Under the new arrangement, OpenAI’s for-profit arm will have greater control, while the non-profit entity will focus on charitable initiatives such as healthcare, education, and science. The company believes this structure will enable it to “raise the necessary capital” and support its mission to develop AGI that surpasses human intelligence.
Source: https://www.theguardian.com/technology/2024/dec/27/openai-plan-for-profit-structure