OpenAI Mulls Restructuring to Balance Nonprofit and For-Profit Arms
OpenAI is considering a corporate restructuring to better coordinate its nonprofit and for-profit divisions, following intense criticism and lawsuits over its 2019 decision to create a for-profit business unit.
Proposed Restructuring
The AI developer is exploring the possibility of converting its for-profit division into a Delaware Public Benefit Corporation (PBC), a legal structure that requires companies to balance shareholder interests, stakeholder interests, and public benefit interests in their decision-making. This move would enable OpenAI to raise necessary capital while pursuing charitable initiatives in sectors such as healthcare, education, and science.
Background on the For-Profit Controversy
OpenAI’s decision to create a for-profit business unit in 2019 sparked fierce pushback, including lawsuits. Tesla CEO Elon Musk, who co-founded OpenAI in 2015, sued the AI developer’s leadership in 2024, alleging that they had “violated terms of Musk’s foundational contributions to the charity.” Musk also launched xAI, a firm behind the AI chatbot Grok, which he claims is being harmed by OpenAI’s anti-competitive practices.
Industry Insights
The proposed restructuring comes as AI agents, including those built using ChatGPT models, are expected to play a more prominent role in decentralized communities in 2025. Asset manager VanEck predicts that over 1 million AI agents will populate blockchain networks by the end of 2025.
Source: Cointelegraph.com