"On Tuesday, the ChatGPT maker announced that it had restructured its for-profit arm into a public benefit corporation, a type of corporate entity whose ostensible mission is to serve the public good while - crucially - generating loads of profit. The move completes the company's metamorphosis: from its origins as a nonprofit devoted to developing open source AI technology for the betterment of humankind to the closed-source, profit-seeking juggernaut that it is today,"
"The company's nonprofit arm, now called the "OpenAI Foundation," will remain in control of the for-profit arm, rebranded OpenAI Group PBC. But as part of the restructuring, the nonprofit will receive a 26 percent stake in the public benefit corporation equal to $130 billion. Down the line, this also allows OpenAI to list itself on the stock market, generating an even more immense valuation than it currently enjoys."
OpenAI restructured its for-profit arm into a public benefit corporation, formalizing a shift toward profit-focused operations while claiming a public-good mission. The nonprofit arm was renamed OpenAI Foundation and will remain in control of the rebranded OpenAI Group PBC, receiving a 26 percent stake valued at $130 billion. The restructuring enables a potential future public listing and larger valuation. The organization moved from a nonprofit open-source origin to a closed-source, profit-seeking company with a reported half-trillion dollar valuation. Legal disputes and negotiating leverage from Microsoft and Elon Musk significantly complicated the conversion.
Read at Futurism
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