OpenAI plans transition to public benefit corporation to attract investment

OpenAI announced plans to transition from a non-profit to a public benefit corporation (PBC). This change aims to attract more investment by balancing shareholder and public interests, allowing for conventional capital raising. Previously, OpenAI operated as a "capped" for-profit entity, limiting its profit-making potential. The new structure will enable the PBC to control operations, while the non-profit arm will focus on charitable initiatives. The move comes after a tumultuous period for OpenAI, including the unexpected firing and reinstatement of CEO Sam Altman. New investors are pushing for a quicker shift to a traditional for-profit model, facing potential legal challenges from Elon Musk.