"The company's for-profit arm is now a public benefit corporation, dubbed OpenAI Group PBC. The nonprofit is now called the OpenAI Foundation and "holds equity in the for-profit currently valued at approximately $130 billion" - it will begin with a $25 billion focus on healthcare and disease and "AI resilience," per OpenAI's blog post. The nonprofit will also get "additional ownership" after OpenAI's for-profit reaches an unspecified valuation milestone."
"The news comes after more than a year of OpenAI's negotiations with the offices of the Attorneys General of California and Delaware - if they hadn't eventually blessed the restructuring, OpenAI wouldn't have been able to move forward. It also follows a thorny and drawn-out legal battle with Elon Musk, who has been suing both the company and CEO Sam Altman in attempts to stop the conversion. Musk co-founded OpenAI in 2015 as a nonprofit research lab."
"In recent months, the company switched its original plan - a for-profit conversion where the nonprofit would no longer be in control of any aspect of the rest of the company - to an adjusted one, under which OpenAI's nonprofit parent will own an equity stake of up to $100 billion and continue to have oversight over the company."
OpenAI completed a controversial restructuring and finalized a new deal with Microsoft covering consumer hardware plans and AGI contingencies. The company's for-profit arm is now a public benefit corporation called OpenAI Group PBC. The nonprofit is now the OpenAI Foundation and holds equity in the for-profit currently valued at approximately $130 billion. The foundation will begin with a $25 billion focus on healthcare, disease, and AI resilience and will receive additional ownership after the for-profit reaches an unspecified valuation milestone. The restructuring followed more than a year of negotiations with California and Delaware attorneys general and legal challenges from Elon Musk. The nonprofit parent will own an equity stake of up to $100 billion and retain oversight. Whether the nonprofit will retain control over underlying technology remains unclear.
#openai-restructuring #public-benefit-corporation #openai-foundation #microsoft-deal #agi-governance
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