OpenAI, the creator of ChatGPT, has evolved from a tax-exempt 501(c)(3) nonprofit, established in 2016, to a more complex organizational structure. Originally formed to ensure that artificial general intelligence (AGI) benefits all humanity, OpenAI transitioned in 2019 to include OpenAI Limited Partnership (LP) to attract necessary investment. The LP model was a “capped-profit” structure, limiting investor returns to 100x, but this cap has been reduced significantly.
In 2025, OpenAI restructured again, establishing OpenAI Foundation as a public benefit corporation (PBC), allowing a balanced approach between profit and public benefit. The Foundation retains substantial control over the PBC, ensuring alignment with its philanthropic mission. OpenAI has significantly increased its grantmaking efforts, pledging $40.5 million to 208 nonprofits in 2025, indicating a robust commitment to tech-related philanthropy. However, operational opacity remains a concern as it navigates its dual mission of profit generation and public welfare.
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