OpenAI, founded by Sam Altman, has announced that it will remain governed and directed by its nonprofit, while reorganizing its for-profit LLC as a Public Benefit Corporation (PBC). This will enable the nonprofit to have more resources to advance its mission while enabling the company to grow with a focus on serving the public.
Found initially as a nonprofit, OpenAI has been governed by that nonprofit and has had a hybrid structure since 2019, with the for-profit LLC as part of it. To become a PBC guarantees that the company will remain dedicated to its mission alongside the shareholder interests, introducing a balance of profit creation and social good.
The nonprofit will continue to be the governing body and majority shareholder of the new PBC model. This comes following months of discussions with civic leaders as well as legal advisory meetings with the offices of Delaware and California Attorneys General. OpenAI board chair Bret Taylor asserted that the nonprofit control and core purpose would not change, even as the organization took on a more formal corporate model.
Sam Altman also commended the move, noting that as the PBC expands, it will give more money to the nonprofit so that it can expand its work in health, education, public services, and scientific discovery. The vision is to make sure that artificial intelligence (AI) serves all people, not just a privileged few, and apply AI to high-impact, democratic ends.
Altman added that the mission continues to focus on building artificial general intelligence (AGI), with the firm planning to make quick, safe progress in the field and drive toward ensuring that AI works for all of society. The transition is intended to enable OpenAI to make progress toward its lofty goals while not compromising its fundamental values of openness and safety for AI technology.
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