OpenAI Wants to Get Rid of Nonprofit Structure
ChatGPT maker OpenAI is changing its structure and looking to give its for-profit arm a more significant role to attract big investors.
OpenAI began in 2015 as a nonprofit organization focused on making significant steps in AI development through research. Now, the company says it needs to transform to meet that mission.
Today, OpenAI has a for-profit division, which is the branch that Microsoft has been investing in for the past few years. However, that division still falls under the nonprofit OpenAI. The plan is to transform that for-profit division into a public benefit corporation (PBC).
Such a PBC structure makes it easier for investors to get involved and receive shares in return. That is what OpenAI is mainly concerned with. The company acknowledges that when it started...