OpenAI Announces Restructuring to Become a Public Benefit Corporation (PBC)
OpenAI has announced a major restructuring effort to become a Public Benefit Corporation (PBC), aiming to facilitate the necessary capital raising for its expansion while eliminating the limitations tied to its current non-profit structure.
This change responds to the need to balance profit-seeking with its general interest mission, in a context where massive investments in general artificial intelligence development are becoming indispensable. The current for-profit branch of OpenAI will be transformed into a Delaware-based PBC entity, integrating both societal concerns and shareholder objectives.
During its last funding round, OpenAI raised $6.6 billion for a valuation of $157 billion, conditional on revising its structure and removing profit caps for investors. Meanwhile, the non-profit entity of OpenAI will hold a significant interest in the new PBC, becoming one of the best-endowed organizations in history.
Founded in 2015 as a non-profit research organization, OpenAI had already integrated a lucrative unit in 2019 to cover the growing costs associated with AI development. This hybrid structure has raised questions, particularly during Sam Altman's departure and return as CEO last year.
To effectively compete with actors like Anthropic or xAI, which have recently secured significant funding, OpenAI believes this restructuring is essential. However, the transition is not without legal challenges. The company faces opposition, including from co-founders and competitors, who question its alignment between mission and profit objectives.
Although the PBC status implies consideration of societal interest, its implementation largely depends on the majority shareholders, who define the organization's strategic orientation.
