- OpenAI provided an update on plans to change its structure after speaking with the Attorneys General in two states
- The company will operate a for-profit arm but remain under non-profit control
- CEO Sam Altman argued this approach will allow it to fundraise to further its goals while benefitting the public
OpenAI has announced a significant restructuring of its corporate framework, transitioning its for-profit arm into a Public Benefit Corporation (PBC) while ensuring that its non-profit parent organization retains control.
"OpenAI was founded as a nonprofit, is today a non-profit that oversees and controls the for-profit, and going forward will remain a non-profit that oversees and controls the for-profit. That will not change," CEO Sam Altman wrote in an open letter. He added the company decided to remain under non-profit control following conversations with the offices of the Attorneys General of California and Delaware.
Under the PBC model, OpenAI's for-profit entity will be obligated to consider both shareholder interests and its public mission, providing a framework that supports growth without compromising ethical considerations. The non-profit parent will maintain significant ownership and oversight, positioning it to better support initiatives in sectors like healthcare, education and science.
The new structure is expected to help facilitate future investments, enabling OpenAI to secure the resources necessary for its research and development goals.
CEO Sam Altman emphasized that OpenAI "is not a normal company and never will be," reaffirming the organization's dedication to democratizing AI tools and fostering innovation that serves the public good.
"We want to be able to operate and get resources in such a way that we can make our services broadly available to all of humanity, which currently requires hundreds of billions of dollars and may eventually require trillions of dollars," he wrote. "We believe this is the best way for us to fulfill our mission and to get people to create massive benefits for each other with these new tools."