OpenAI, the creator of ChatGPT, has announced a plan to restructure its organization to better balance its nonprofit and for-profit activities.
The company wants to address criticism and legal issues it has faced since launching a for-profit division in 2019 to raise funds to develop advanced AI models.
According to a blog post published on December 27, OpenAI is considering converting its for-profit company into a Delaware Public Benefit Corporation (PBC), a legal form for private companies that create public goods.
This legal structure requires companies to balance their profits with the public good to ensure that decisions benefit both stakeholders and society. OpenAI says this change will help ensure funding in a more transparent and responsible manner.
At the same time, OpenAI’s nonprofit arm will expand its efforts in areas such as healthcare, education and science by hiring a dedicated leadership team. The goal is…
