OpenAI has announced a change in its plans for transforming the company — its nonprofit structure will remain the controlling organization of the business that develops ChatGPT and other generative AI-based products. This decision was made after consultations with community leaders and representatives from the offices of the Attorneys General of California and Delaware. “We have decided that the nonprofit will continue to control OpenAI after discussions with public figures and relevant government agencies,” OpenAI CEO Sam Altman said in a letter to employees.
According to the new structure, OpenAI’s commercial subsidiary will be converted into a public benefit corporation, which, in addition to making a profit, must consider the interests of both shareholders and the organization’s mission. The nonprofit board of OpenAI will remain the main shareholder of this subsidiary and will retain the right to appoint its board of directors. OpenAI’s press service confirmed that the nonprofit part of the company will receive a stake in the new structure, the size of which will be determined by independent financial advisors.
According to OpenAI spokesperson Steve Sharpe, investors and employees of the future public benefit corporation will receive ordinary shares without restrictions on potential income. This should make it easier to attract investment in the future. In the previous structure, investors had limits on profitability, which, according to management, no longer matches the current AI market conditions.
OpenAI CEO Sam Altman noted in a memo that the company needs hundreds of billions of dollars to develop its services and fulfill its mission — to ensure the benefits of generative AI for all humanity. According to the company, the nonprofit board will continue to control key decisions, and the new structure will allow more effective implementation of programs in healthcare, education, science, and public services.
