OpenAI discloses plan to become for-profit company

In a surprise move, OpenAI has announced its plan to restructure its organisation, shifting away from its current non-profit-led model.

With this move, the ChatGPT parent company aims to become a for-profit company and address the ongoing governance controversies surrounding the AI pioneer.

Originally founded as a non-profit in 2015, OpenAI has evolved into a “capped” for-profit entity, generating profits but with certain limitations.

However, now, the ChatGPT maker is pursuing a transition to a for-profit public benefit corporation (PBC), a move expected to get additional investment opportunities.

OpenAI reorganising as a PBC means that the company will be required to balance the interests of its shareholders, stakeholders, and the public benefit when making key decisions.

“It will enable us to raise the necessary capital with conventional terms like others in this space,” the company noted in a blog post.

The company also stressed that its current structure does not allow the board to directly consider the interests of those who would finance its mission.

As part of the restructuring, the PBC will oversee OpenAI's operations and businesses. Meanwhile, the company's non-profit arm will build a dedicated team focused on driving philanthropic initiatives in areas including healthcare, education, and science.

Notably, OpenAI competitors such as Anthropic and Elon Musk’s xAI also operate as PBCs.