"Its main nonprofit organization will control a new public benefit corporation that will house OpenAI's for-profit operations. The restructuring will make it easier for OpenAI to issue traditional equity to new investors, allowing the startup to raise the massive amount of money needed to pursue its ambitious plans. The OpenAI nonprofit doesn't just get control. It also gets an equity stake in the new business that is worth more than $100 billion, Taylor said."
"The Gates Foundation, backed by Microsoft cofounder Bill Gates, is another giant charity that gets its funding from the tech industry. Then there's the Novo Nordisk Foundation, the charitable arm of the Danish drugmaker behind Ozempic. That charity has become incredibly well-funded as weight-loss drugs have boomed in recent years. In fact, when OpenAI CFO Sarah Friar discussed the startup's new structure at a tech conference on Tuesday, she cited the Novo Nordic Foundation as an example of what OpenAI is trying to do."
OpenAI and Microsoft are nearing resolution of their contractual dispute, prompting a corporate restructuring. A main nonprofit will control a newly created public benefit corporation that houses OpenAI's for-profit operations. The nonprofit will also receive an equity stake in the restructured business valued at more than $100 billion. The change enables issuance of traditional equity to new investors to raise large sums for ambitious AI development. The nonprofit emphasized safety and community impact as core governance priorities. Regulators in California and Delaware are engaged in shaping oversight of the new structure. The nonprofit's resources will rival major global foundations.
Read at Business Insider
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