"As we enter 2025, we will have to become more than a lab and a startup - we have to become an enduring company," OpenAI said, adding that many of its competitors are registered as PBCs, including Anthropic and even Elon Musk's own xAI. "[The move] would enable us to raise the necessary capital with conventional terms like others in this space."
"Our plan would result in one of the best resourced non-profits in history," claims OpenAI, regarding the balance between its for-profit arm and nonprofit initiatives as it restructures to achieve its goals.
Following the reorganization, the for-profit division would be responsible for overseeing OpenAI's "operations and business," while the nonprofit arm would operate separately with its own leadership team and a focus on charitable efforts in health care, education and science.
In October, the company secured $6 billion in new funding, and according to some estimates, OpenAI's for-profit arm could be worth as much as $150 billion, illustrating the financial potential driving this transformation.
#openai #public-benefit-corporation #for-profit-transformation #business-strategy #non-profit-initiatives
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