OpenAI announced Friday its intention to restructure its operations, aiming to separate its rapidly expanding business from the nonprofit board that currently oversees it. The plan, which has drawn criticism from Elon Musk and others, was highlighted by Chairman Bret Taylor during the recent AI+ Summit in San Francisco.
In a detailed blog post, OpenAI explained how the restructuring would impact its nonprofit and for-profit entities. The nonprofit, which would maintain a significant ownership stake in OpenAI’s business, is set to become a well-funded organization dedicated to “scientific and philanthropic” endeavors. Meanwhile, OpenAI’s business arm would transition into a Delaware-chartered public benefit corporation.
“Our plan would result in one of the best resourced nonprofits in history,” the blog post stated. The nonprofit’s ownership stake in the business would be held as shares valued independently by financial advisors, significantly increasing the resources available from donor contributions.
The new public benefit corporation would operate independently, with the flexibility to determine its direction. OpenAI emphasized that its current structure limits the board’s ability to consider the interests of financiers and hampers the nonprofit’s capacity to expand its role beyond controlling the for-profit division.
The restructuring proposal has faced resistance, with Elon Musk, one of OpenAI’s early donors, filing a lawsuit to block the move. Meta has also called for an investigation by California’s attorney general.
