OpenAI, the company known for its popular chatbot ChatGPT, has announced plans to change its corporate structure, which includes creating a public corporation. This decision will allow OpenAI to attract more investment and ease the restrictions imposed by its current nonprofit structure.
According to the new structure, a public corporation—which is a for-profit organization—will manage OpenAI’s operations and business. Meanwhile, the nonprofit organization will focus on charitable initiatives in sectors such as healthcare, education, and science. In its blog, OpenAI noted that this structure will enable it to “raise the necessary capital,” similar to other companies in the field.
OpenAI was founded in 2015 as a nonprofit research lab. However, due to the rising costs of developing artificial general intelligence, the company decided to change its structure to attract more investment. In October, OpenAI raised $6.6 billion at a $157 billion valuation, but it still expects losses of $5 billion this year.
OpenAI’s plans have drawn criticism from some former employees and competitors. Elon Musk, one of OpenAI’s founders, has filed a lawsuit to stop the company’s transition to a for-profit structure, accusing it of abandoning its original charitable mission. Meta has also opposed the move, believing it could have a significant impact on Silicon Valley.
