OpenAI explores transition to public benefit corporation to attract investors

OpenAI is considering a shift to a Delaware Public Benefit Corporation to attract more investors while keeping its nonprofit mission. This change would allow a for-profit arm to pursue profits while the nonprofit retains a significant stake. The proposal aims to balance the need for investment with the organization's commitment to societal benefits in areas like healthcare and education. OpenAI's board believes this structure could enhance investor interest and support its ambitious AI development goals. This potential restructuring follows consultations with regulators and comes amid a lawsuit from co-founder Elon Musk, who claims it breaches the original nonprofit agreement. The board maintains that the change is necessary for long-term success.