31 articles | last updated: Dec 28 02:53:59
The move aims to secure significant funding for AI development while balancing public benefit and shareholder interests.
- OpenAI plans to restructure its for-profit arm as a Delaware-based Public Benefit Corporation (PBC) in 2025, allowing it to raise conventional equity from investors.
- The nonprofit arm will retain a stake in the PBC, with shares valued by independent financial advisors, and will focus on charitable initiatives in healthcare, education, and science.
- The shift is driven by the increasing costs of AI development, with OpenAI stating it needs more funding than initially anticipated to remain competitive in the rapidly evolving AI landscape.
- Critics, including Elon Musk, have opposed the move, alleging it deviates from OpenAI’s original nonprofit mission and raises concerns over profit-driven priorities.
- OpenAI asserts the PBC structure will align with its mission to ensure artificial general intelligence benefits humanity while enabling sustainable growth and innovation.
People, Places and Things In This Story
- OpenAI Artificial intelligence company
- Elon Musk CEO of Tesla Motors
- Public-benefit corporation Organization type
- Artificial intelligence Field of study
- Delaware US state
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