California Attorney General Rob Bonta has approved the restructuring of the OpenAI Foundation, allowing its for-profit subsidiary, OpenAI Group PBC, to operate as a public benefit corporation. This decision follows significant lobbying efforts and means that OpenAI’s subsidiary can function like a traditional corporation, similar to its competitors, Anthropic PBC and Elon Musk’s X.AI Corp. Bonta will not pursue legal action to block this transformation, which positions OpenAI to enhance its business operations. By adopting the public benefit corporation structure, OpenAI aims to balance profit-making with broader social impact, a strategy increasingly embraced in the AI sector. This approval marks a pivotal moment for OpenAI as it seeks to leverage its resources for innovation while adhering to public interest standards. The move not only impacts OpenAI but also reflects ongoing trends in the AI industry.
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