AI

OpenAI unveils for-profit strategy

OpenAI plans to restructure and launch a public benefit corporation, according to Reuters, with aims to raise more capital and ease nonprofit restrictions.

Image: Adobe Stock

December 27, 2024

OpenAI plans to restructure and launch a public benefit corporation, according to Reuters, with aims to raise more capital and ease nonprofit restrictions.

The firm said it would seek PBC status in Delaware for its for-profit division, while it indicated it plans to keep its nonprofit parent entity operational after the restructuring.

"We once again need to raise more capital than we'd imagined. Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness," OpenAI said in a statement quoted by Reuters. "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."