OpenAI’s benefit plan includes a charitable organization

Follow up imaginary monthsOpenAI has finally shared how it plans to become a for-profit company. In a blog post written by its board of directors, OpenAI said Thursday it plans to transform its for-profit arm into a Public Benefit Corporation sometime in 2025. PBCs or B Corps are for-profit organizations that try to balance the interests of stakeholders while doing good. affect people.

“When we enter 2025, we will be more than a lab and a start-up – we have to be a sustainable company,” OpenAI said, adding that many of its competitors are registered as PBCs, including. Anthropic and even Elon Musk himself xAI. “(This move) would allow us to raise the necessary funds with a common voice like no other in this area.”

As part of the transition, the nonprofit OpenAI will retain a stake in the for-profit sector as shares “at a fair valuation determined by independent financial advisors,” but will lose control of the company. “Our system could create one of the best nonprofits in history,” says OpenAI.

Following the restructuring, the for-profit sector will be responsible for managing OpenAI’s “services and business”, while the non-profit organization will work separately from its leadership team and focus on philanthropic projects in health, education and science.

OpenAI did not say whether CEO Sam Altman will receive a share of the stock as part of the reorganization. Last year, the board of directors of OpenAI he summarily fired Altman before returning him, in a process that sparked an organizational crisis that led to this week’s announcement. According to another estimateOpenAI’s profitable arm could be worth $150 billion. In 2019, OpenAI estimates that it will need to raise at least $10 billion to develop artificial intelligence. In October, the company was secured $6 billion in new money.

“The billions of dollars that major companies are investing in AI development shows what it will take for OpenAI to continue to achieve this goal,” OpenAI said. “We also have to raise more money than we thought. Advertisers want to support us but, on a larger scale, they need constant consistency and poor communication.”

Despite this week’s announcement, OpenAI faces a number of hurdles in implementing its plan. In addition to his own an ongoing debate and Elon Musk, Meta soon sent a letter to California’s attorney general urging him to stop OpenAI from turning into a for-profit company, saying the move would be “wrong” and would “result in the proliferation of the same philanthropic startups until they turn a profit.”

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