OpenAI Transitions to Public Benefit Corporation
The plan, approved by Delaware Attorney General Kathy Jennings, shifts the company from its original 2015 non-profit status to a public benefit corporation—a for-profit model designed to operate in the public interest.
As part of the transition, US tech giant Microsoft, an early investor in OpenAI, received a 27% ownership stake. Meanwhile, the non-profit parent organization that has overseen OpenAI since its founding retains a $130 billion share, which analysts say could increase in value.
The decision resolves nearly a year of scrutiny from California and Delaware attorneys general, investors, and philanthropic groups over whether OpenAI could maintain its mission while adopting a more conventional corporate structure.
Industry observers note the new model is likely to support OpenAI in raising capital, recruiting talent, and possibly preparing for an initial public offering.
Addressing the approval, Jennings said she had no objection to the plan, effectively closing over a year of discussions about governance and the balance of authority between the non-profit board and for-profit investors. Authorities in both Delaware and California had been reviewing the proposed changes.
“OpenAI has completed its recapitalization, simplifying its corporate structure,” Bret Taylor, chair of OpenAI’s board, said in a blog post.
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