New Delhi, May 6 || Sam Altman-run OpenAI will continue to be overseen and controlled by the nonprofit and its ‘for profit LLC’ will transition to a public benefit corporation (PBC), giving the nonprofit better resources to support several benefits, the company has announced.
OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit.
“Going forward, it will continue to be overseen and controlled by that nonprofit. Our for-profit LLC, which has been under the nonprofit since 2019, will transition to a Public Benefit Corporation (PBC)–a purpose-driven company structure that has to consider the interests of both shareholders and the mission,” the ChatGPT maker said in a statement.
The nonprofit will control and also be a large shareholder of the PBC.
“Our mission remains the same, and the PBC will have the same mission. We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California,” said OpenAI Board chair Bret Taylor.
Altman said as the PBC grows, the nonprofit’s resources will grow, so it can do even more.