OpenAI announces new for-profit structure to enhance funding for AI development
OpenAI announced plans to change its structure by creating a public benefit corporation (PBC) to facilitate capital raising. This new structure will allow the for-profit arm to prioritize societal interests alongside shareholder value. The nonprofit will retain a significant interest in the PBC through shares, making it one of the most well-funded nonprofits. OpenAI aims to attract more investment as the competition in artificial intelligence intensifies. Previously a nonprofit, OpenAI established a for-profit unit in 2019 to secure funding for AI development. The company is now seeking to remove profit caps for investors to support its growth.