NishMath

OpenAI has announced plans to transition its for-profit arm into a Public Benefit Corporation (PBC) in Delaware, a move aimed at ensuring its long-term sustainability while maintaining its mission. This structural change is designed to balance profit generation with the company's broader goals, particularly in healthcare, education, and science, which will be pursued by its non-profit arm. The PBC structure will allow OpenAI to raise necessary capital while also maintaining a public benefit interest in its decision making. The company has also indicated the need to become an enduring company as it moves into 2025.

This transition comes with a clarified definition of Artificial General Intelligence (AGI), defining it as a system capable of generating over $100 billion in profits. This definition, agreed upon with Microsoft, is important as it triggers a clause in their agreement, granting them access to advanced models only before AGI is reached. There are reports the company may be trying to remove this clause as well. The move comes after a year in which OpenAI has experienced large losses, with the company reportedly not expected to turn a profit until 2029.

ImgSrc: i.insider.com

References :

• Techmeme: OpenAI says the PBC will oversee commercial operations, and the nonprofit will hire staff to pursue charitable activities in health care, education, and science (Hayden Field/CNBC)
• Techmeme: OpenAI says its board of directors is evaluating its corporate structure, including a plan to turn its for-profit arm into a Delaware Public Benefit Corporation (OpenAI)
• Analytics India Magazine: OpenAI Must Earn $100 Bn to Prove AGI’s Worth to Microsoft
• www.techmeme.com: OpenAI said Friday that in moving toward a new for-profit structure in 2025, the company will create a public benefit corporation …
• analyticsindiamag.com: Only when OpenAI’s systems generate maximum profits, the company would have achieved AGI. The post appeared first on .
• www.businessinsider.com: OpenAI has detailed its plans for a new corporate structure that would separate its business from being controlled by its nonprofit board.
• Latest from Tomshardware in Artificial-intelligence: OpenAI switching to a for-profit company to raise more cash as it continues to lose money
• Neowin: OpenAI will be transforming its for-profit into a Delaware Public Benefit Corporation
• www.engadget.com: In a blog post penned by its board of directors, OpenAI said Thursday it plans to transform its for-profit arm into a Public
• Quartz: OpenAI may become a for-profit because it needs 'more capital than imagined'
• Fortune | FORTUNE: OpenAI confirms plans to become a for-profit company as it looks to raise even more investor money
• Artificial intelligence (AI) | The Guardian: OpenAI lays out plan to shift to for-profit corporate structure
• Gizmodo: To Further Its Mission of Benefitting Everyone, OpenAI Will Become Fully for-Profit
• the-decoder.com: OpenAI wants to turn its profit-making arm into what's called a public benefit corporation - a business model that tries to balance making money with doing good for society.
• LessWrong: Our plan is to transform our existing for-profit into a Delaware (PBC) with ordinary shares of stock and the OpenAI mission as its public benefit interest.
• PCMag Middle East ai: OpenAI says the plan “would result in one of the best-resourced non-profits in history,” and allow it to raise funds with "conventional terms," like its competitors.
• Benzinga - Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals: OpenAI's For-Profit Transition, Trump's AI Advisor, And Google's Code Red: This Week In AI
• www.tekedia.com: OpenAI Announces Reason For Transition to For-Profit Organization, Lays Out Plans

Classification:

• HashTags: OpenAI PublicBenefitCorp ArtificialIntelligence
• Company: OpenAI
• Target: OpenAI
• Product: ChatGPT
• Feature: corporate structure
• Type: AI
• Severity: Informative