Overview

• OpenAI announced its nonprofit parent will retain control over its for-profit operations as it transitions to a public benefit corporation (PBC).
• The decision comes after discussions with civic leaders and attorneys general in California and Delaware, responding to legal challenges and public concerns.
• The restructuring allows OpenAI to raise up to $40 billion at a $300 billion valuation while removing investor profit caps to attract more funding.
• CEO Sam Altman emphasized the nonprofit's continued mission alignment with the PBC, which will prioritize both societal benefits and shareholder interests.
• Elon Musk’s lawsuit against OpenAI, alleging a departure from its founding mission, remains active, with a jury trial scheduled for March 2026.