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OpenAI’s for-profit plan includes a public benefit corporation
Following months of speculation, OpenAI has finally shared its plan to become a for-profit company. In a blog post penned by its board of directors, OpenAI announced that it intends to transform its for-profit arm into a Public Benefit Corporation (PBC) in 2025.
According to the announcement, this move would enable OpenAI to raise capital with conventional terms, similar to its competitors. The company’s nonprofit division would retain a stake in the for-profit unit in the form of shares, but would no longer have direct oversight of the company.
As part of this transformation, OpenAI’s for-profit division would be responsible for overseeing the company’s operations and business, while the nonprofit arm would operate separately with its own leadership team and focus on charitable efforts in healthcare, education, and science.
Source: www.engadget.com
