OpenAI, the developer of ChatGPT, is contemplating a corporate restructuring that aims to better align its nonprofit and for-profit branches. This discussion arises amidst ongoing criticism over its current legal structure. The company, which has faced backlash and lawsuits following its 2019 decision to establish a for-profit entity, is now considering converting this division into a Delaware Public Benefit Corporation (PBC). This type of legal structure mandates the balancing of shareholder interests, stakeholder interests, and public benefit in decision-making.
In its recent blog post, OpenAI noted that adopting the PBC model would facilitate raising necessary capital under conventional terms. Additionally, this restructuring would enable the nonprofit aspect to recruit leadership and staff dedicated to charitable initiatives across healthcare, education, and science sectors.
Elon Musk, who co-founded OpenAI, has recently sued the company’s leadership, alleging violations related to his foundational contributions. He claims CEO Sam Altman manipulated him into co-founding a supposedly nonprofit venture. Musk, now leading AI company xAI, accuses OpenAI of anti-competitive practices.
David Sacks, the anticipated “White House AI and Crypto Czar” under U.S. President-elect Donald Trump, is also critical of OpenAI. He accuses the organization of transitioning from a philanthropic endeavor to a profit-driven entity.
Despite legal and public scrutiny, OpenAI suggests that the creation of a for-profit entity was essential to secure the vast resources needed for developing AI technologies. As the AI domain evolves, AI agents, including those based on ChatGPT models, are expected to play increasingly significant roles in decentralized communities by 2025. Asset manager VanEck predicts that these AI agents will proliferate within blockchain networks, potentially exceeding one million by the end of 2025.
