OpenAI announces shift to new corporate structure for investment growth
Date
12/29/2024 8:32:51 AM
(MENAFN) OpenAI revealed plans on Friday to transition away from its control by a non-profit, addressing a key issue in its evolution as an artificial intelligence leader.
Originally founded as a non-profit in 2015, OpenAI later adopted a "capped" for-profit model that allowed for a limited profit generation. However, the company has been pursuing the establishment of a for-profit public benefit corporation (PBC), a move that could attract greater investment.
In a blog post, OpenAI outlined its intention to restructure as a PBC, which, according to the company, "requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decision-making."
"This will enable us to raise the necessary capital under conventional terms, similar to other companies in the sector," OpenAI explained.
The company highlighted the need for additional capital, noting that billions of dollars are now being invested by major firms in artificial intelligence development.
"Investors want to support us but, at this scale of capital, they require conventional equity and less customized structural arrangements," OpenAI added.
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