OpenAI is considering a strategic restructuring to harmonize its profit and non-profit branches. The proposal aims to create governance oriented towards the common good, addressing criticisms about the organization’s legal structure.
Let’s see all the details in this article.
Restructuring in sight for profit and non-profit branches: OpenAI could become a Delaware Public Benefit Corporation
OpenAI, the creator of the famous ChatGPT, is considering a significant reorganization of its corporate structure to address growing criticisms and ensure a balance between commercial interests and social benefit.
The company is considering the possibility of transforming its for-profit division into a Delaware Public Benefit Corporation (PBC). That is, a legal configuration that obliges businesses to balance the interests of shareholders with those of society and stakeholders.
The announcement, which arrived via an official post on OpenAI’s blog on December 27, marks an important step in the organization’s strategy.
According to OpenAI, the conversion into PBC would allow for raising capital on more favorable terms, in line with the practices adopted by other innovative companies.
The new structure could also strengthen the non-profit component of the organization, allowing the hiring of personale specializzato for charity projects in the fields of healthcare, education, and science.
The company in its post stated the following:
“The PBC will allow us to pursue our mission of generating value for society by maintaining a balance between economic objectives and public interest.”
“`html Criticism of the current structure “`
As mentioned, the structure of OpenAI has sparked controversy since 2019, when the company decided to add a for-profit division to the original non-profit foundation.
This choice was motivated by the need to raise substantial capital to support the development of complex artificial intelligence models. However, many observers have accused OpenAI of betraying its original mission.
The criticisms intensified in 2024, when Elon Musk, co-founder of OpenAI, initiated a lawsuit against the company and its CEO Sam Altman.
Musk indeed claims that the leadership of OpenAI manipulated his involvement, exploiting his ethical concerns about the risks of artificial intelligence and transforming the organization into a purely commercial entity.
According to the lawsuit, OpenAI allegedly “abandoned philanthropic principles” to focus on high profits. This way attracting the ire not only of Musk, but also of other critics in the sector, such as David Sacks, an influential advisor to the Trump administration.
In any case, the restructuring proposal comes at a time when artificial intelligence is becoming increasingly central in multiple sectors, from blockchain to healthcare.
According to VanEck, an asset manager, by 2025 AI agents created with models like ChatGPT will have an increasingly significant role in decentralized communities, with an estimated population of one million active agents.
OpenAI is therefore at a crucial crossroads: continue in this direction with the current structure or adopt a more transparent model oriented towards the common good.
The transformation into a PBC could represent a compromise between the fundraising needs and the necessity of maintaining public trust.