Official announcement from OpenAI or SEC filings

OpenAI to Transform For-Profit Arm into PBC, Says It Needs 'More Capital Than We'd Imagined'

Dec 27, 2024, 02:45 PM

OpenAI, the AI research organization, has announced plans to restructure its corporate organization to better support its mission of ensuring that artificial general intelligence (AGI) benefits all of humanity. The company plans to transform its existing for-profit arm into a Delaware Public Benefit Corporation (PBC) with ordinary shares of stock, stating it needs 'more capital than we'd imagined' to advance its work. This move aims to enable OpenAI to raise capital under more conventional terms, as investors prefer traditional equity structures. The restructuring will allow OpenAI to raise the necessary funds while maintaining its commitment to its core mission. The non-profit component of OpenAI will continue to exist and hold shares in the new PBC. The plan faces opposition from Elon Musk and others.