OpenAI Resumes Nonprofit Control; Restructures For-Profit Arm into Public Benefit Corporation

OpenAI, the developer of ChatGPT, is changing its corporate structure. This is aimed at supporting its long-term mission to develop artificial general intelligence (AGI) that benefits all of humanity. CEO Sam Altman announced this decision confirming that OpenAI’s for-profit arm will convert into a Public Benefit Corporation (PBC).

Why is the restructuring being done now?

The restructuring adopted by OpenAI brings it closer to peers like Anthropic and xAI, which follow similar frameworks. The new PBC model replaces the company’s complex capped-profit structure with a traditional equity model, while maintaining nonprofit OpenAI Inc.’s full control over the for-profit entity.

The transition is partly driven by growing surging demand for AI tools like ChatGPT, which the company is unable to meet at current scale. “We currently cannot supply nearly as much AI as the world wants,” he wrote, pointing to increasing interest as systems become more powerful. “We want to build a brain for the world and make it super easy for people to use for whatever they want,” Altman said.”

The PBC will emphasise on improving its capabilities, while making AI more accessible, aligning with Altman’s vision for “democratic AI”—tools that are widely available, safe, and aligned with human needs.

Expansion in other verticals

Nonprofit OpenAI Inc will be looking forward to offering AI services across sectors such as healthcare, education, science, and public services by launching designated applications. Notably, this is a part of an effort to address civic and regulatory feedback by positioning the organisation as a major player in AI development.

“We want our nonprofit to be the largest and most effective in history focused on using AI to enable the highest-leverage outcomes for people,” Altman wrote.