OpenAI plans shift to public benefit corporation to attract investment

OpenAI announced plans to change its corporate structure in 2024 by creating a public benefit corporation (PBC) to manage its operations. This shift aims to attract more investment by easing restrictions from its current non-profit parent. The new PBC will control OpenAI's business activities, while the non-profit will focus on charitable initiatives in areas like health care and education. This change follows a recent $6.6 billion funding round that required adjustments to OpenAI's profit structure. OpenAI's move aligns with similar structures used by competitors like Anthropic and xAI. The company stated that this new structure will help it raise capital under conventional terms.