OpenAI confirms it’s planning to turn into a public benefit corporation
OpenAI laid out its plans to convert from a nonprofit-controlled company into a for-profit public benefit corporation (PBC) in a new blog post, confirming previous reporting. The rare company type will allow the startup to “balance shareholder interests, stakeholder interests, and a public benefit interest in its decision-making,” along with raising more capital.
“We once again need to raise more capital than we’d imagined,” the post read.
Rivals like Elon Musk’s xAI and Anthropic also use the structure. As the Financial Times previously noted, “A key benefit of the PBC structure is its potential to thwart an unwanted acquisition or an activist’s demands,” including those who might claim the company isn’t making enough money.
“We once again need to raise more capital than we’d imagined,” the post read.
Rivals like Elon Musk’s xAI and Anthropic also use the structure. As the Financial Times previously noted, “A key benefit of the PBC structure is its potential to thwart an unwanted acquisition or an activist’s demands,” including those who might claim the company isn’t making enough money.
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