OpenAI announces plans to transition to a public benefit corporation

OpenAI plans to transition its for-profit organization into a Delaware Public Benefit Corporation (PBC) to better align with its mission of developing artificial general intelligence (AGI) for the benefit of humanity. This change will allow OpenAI to raise capital while balancing shareholder and public interests. Currently, OpenAI operates as a for-profit entity controlled by a nonprofit, which limits its ability to consider investor interests. The new structure will enable the nonprofit to focus on charitable initiatives while the PBC manages business operations. The transition faces challenges, including legal action from co-founder Elon Musk, who claims OpenAI is straying from its original mission. Competitors like Meta are also opposing the change, citing potential impacts on the tech industry.