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OpenAI's for-profit plan includes a public benefit corporation

OpenAI has finally shared how it plans to become a for-profit company.

As part of the transformation, OpenAI’s nonprofit division would retain a stake in the for-profit unit in the form of shares “at a fair valuation determined by independent financial advisors,” but would lose direct oversight of the company. Last year, OpenAI’s board of directors briefly fired Altman before bringing him back, in the process sparking the institutional crisis that led to this week’s announcement. In addition to its ongoing legal feud with Elon Musk, Meta recently sent a letter to California’s attorney general urging him to stop OpenAI from converting to a for-profit company, saying the move would be “wrong” and “could lead to a proliferation of similar start-up ventures that are notionally charitable until they are potentially profitable.”

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