Official announcements from OpenAI or filings with the Delaware Division of Corporations

OpenAI Plans Delaware Public Benefit Corporation Restructuring to Separate For-Profit and Nonprofit Operations Amid Elon Musk Opposition

Dec 27, 2024, 01:03 PM

OpenAI's Board of Directors is currently evaluating the organization's corporate structure with the aim of establishing a more robust nonprofit entity supported by the success of its for-profit operations. The proposed restructuring would involve creating a Delaware Public Benefit Corporation (PBC) that could facilitate increased capital raising. This shift marks a significant transition from OpenAI's origins as a nonprofit research organization founded a decade ago. The plan, however, has encountered opposition from notable figures, including Elon Musk. The Board's initiative seeks to better align OpenAI's mission of ensuring that artificial general intelligence (AGI) benefits humanity with its operational framework.