OpenAI, the AI research company behind ChatGPT, announced plans to transition into a for-profit structure by 2025. The company will establish a public benefit corporation (PBC) to manage commercial operations, while maintaining a separate nonprofit arm focused on charitable initiatives.
OpenAI said its existing for-profit division will become a public benefit corporation, or PBC,"with ordinary shares of stock."
OpenAI said Friday that in moving toward a new for-profit structure in 2025, the company will create a public benefit corporation to oversee commercial operations, removing some of its nonprofit restrictions and allowing it to function more like a high-growth startup."The hundreds of billions of dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission," OpenAI's board wrote in the post.
Developing the large language models at the heart of ChatGPT and other generative AI products requires an ongoing investment in high-powered processors, provided largely byBy transforming into a Delaware PBC"with ordinary shares of stock," OpenAI says it can pursue commercial operations, while separately hiring a staff for its nonprofit arm and allowing that wing to take on charitable activities in health care, education and science.
In 2019, OpenAI aimed to move past its role as solely a research lab in hopes of functioning more like a startup, so it created a so-called capped-profit model, with the nonprofit still controlling the overall entity.
OPENAI Artificialintelligence Chatgpt Forprofit Publicbenefitcorporation
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