OpenAI to Transition For-Profit Arm Into Public Benefit Corporation in 2025

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.