OPENAI CONVERTS TO BEING A FOR-PROFIT BUSINESS – The company will now operate as a public benefit corporation
OpenAI has officially converted its main operating unit into a for-profit corporation, completing a lengthy legal transition that reshapes the structure of the world’s most prominent AI company.
The move was approved by Delaware Attorney General Kathy Jennings, ending more than a year of negotiations and regulatory scrutiny in Delaware and California.
Founded as a non-profit in 2015, OpenAI will now operate as a public benefit corporation — a for-profit entity designed to pursue both commercial success and social good.
The shift allows the ChatGPT maker to raise capital more easily and generate profit from its AI technology, while remaining under the oversight of its original non-profit parent, soon to be renamed the OpenAI Foundation.
The restructuring also includes a new ownership model and a revised deal with long-time partner Microsoft. That agreement values OpenAI at an estimated $500 billion, giving Microsoft a 27% stake — now worth more than $100 billion.
