AsianFin -- OpenAI has announced plans to restructure its existing for-profit startup into a Public Benefit Corporation (PBC) in Delaware, which will have both profit and non-profit segments. The new structure will allow OpenAI to hold common stock while still maintaining its AGI (Artificial General Intelligence) mission as a public benefit. A PBC is a special type of for-profit company that requires balancing the interests of shareholders, stakeholders, and the public good in its decision-making processes.

OpenAI said in a release, “By 2025, we will no longer be just a lab and a startup; we must also become a sustainable enterprise.” Under the new structure, OpenAI’s for-profit and non-profit arms will operate separately. The PBC will manage and control OpenAI’s operations and business, while the non-profit organization will focus on charitable activities in sectors like healthcare, education, and science. This restructuring will allow OpenAI to raise necessary funds in a more traditional manner, similar to other companies in the AI industry.

OpenAI emphasized that it needs more funding than initially anticipated and that investors are willing to support the company, but to secure large-scale capital, a conventional equity structure with fewer restrictions is required.