OpenAI Rejects for-Profit Transformation, Remains Non-Profit

Despite initial plans to transition into a for-profit company, OpenAI has chosen to maintain its non-profit status. The organization will continue operating under its nonprofit arm and transitioning the Business Wing to a public benefit corporation (PBC). 2019 saw OpenAI make this change to raise capital but has since stayed non-profit. The new PBC structure emphasizes both financial gain for shareholders and prioritizing social mission. Elon Musk, who disagreed with the company’s decision, remains determined to proceed with his legal campaign alleging a betrayal of their founding agreements. 30 billion in funding is expected from Softbank which will be part of this change. Microsoft has not yet approved this transformation, but OpenAI is looking to finalize a deal with the tech giant in order to ensure that any changes protect their investment.