Artificial intelligence giant OpenAI revealed long-anticipated plans to restructure the organization Friday, announcing it will transition to a public benefit corporation with an associated nonprofit arm. The company said the move will allow it to raise the capital needed to finance its massive computing needs while balancing the interests of shareholders and the public (see overview).
Now valued at $157B, the maker of ChatGPT originally began as fully nonprofit in 2015. In 2019, the organization moved to a hybrid model, with the relatively smaller nonprofit arm controlling a for-profit operation—a structure that played a role in a failed attempt to oust CEO Sam Altman in 2023.
In response to the new plans, an AI safety nonprofit joined an existing lawsuit brought by Elon Musk—an early investor in OpenAI and CEO of competitor xAI—attempting to block OpenAI's transition to a for-profit entity. The suit alleges the move violates OpenAI's founding charter, among other claims.
Take a deep dive into OpenAI's history, Musk's relationship with the group, and much more here.
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