OpenAI backs off push to become for-profit company
OpenAI abandoned its effort to shift to a for-profit corporate structure, instead opting for a public benefit corporation that will be overseen by its nonprofit.
OpenAI announced on Monday that the artificial intelligence (AI) giant is scuttling its plan to move the company away from a nonprofit structure to becoming a for-profit company.
The ChatGPT-maker created a for-profit limited liability company (LLC), which it will now convert into a public benefit corporation that considers the interests of shareholders as well as OpenAI's mission. OpenAI's nonprofit will have operational control over the public benefit corporation and will be a large shareholder in it.
"We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California," OpenAI Chairman Bret Taylor said in a statement.
OPENAI SHAKES UP CORPORATE STRUCTURE WITH GOAL OF SCALING UP AGI INVESTMENT
"We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission of ensuring AGI benefits all of humanity."
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