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OpenAI announces plan to transform into a for-profit company
OpenAI said the structure will help it raise more money.
In a blog post published on Friday, OpenAI’s board said it will replace the company’s existing structure with one that puts control into the hands of its for-profit arm. The nonprofit will operate separately with its own leadership team and staff “to pursue charitable initiatives in sectors such as health care, education, and science.” The board said the structure will allow OpenAI to “raise the necessary capital” to build toward artificial general intelligence while also creating “one of the best resourced non-profits in history.” OpenAI’s competitors, including Anthropic and Elon Musk’s xAI, also operate as PBCs. Last month, Elon Musk filed a motion to stop OpenAI from becoming a for-profit company, while Meta CEO Mark Zuckerberg similarly asked California Attorney General Rob Bonta to block the transition.
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