OpenAI announced its restructuring plan to maintain control as a nonprofit while establishing a new for-profit entity, addressing pressure from regulators and civic groups. The nonprofit will retain a $100 billion stake in the Public Benefit Corporation (PBC), reinforcing its philanthropic mission. Chairman Bret Taylor emphasized that the nonprofit will continue to guide OpenAI’s future, ensuring AGI benefits all of humanity. This restructuring is crucial for securing approximately $19 billion in equity financing, essential for the company’s expansion and potential IPO. However, the plan faces scrutiny from civic and labor groups in California and Delaware regarding the treatment of charitable assets. Additionally, both states’ attorneys general are investigating potential violations of charitable laws. In conjunction with this, OpenAI and Microsoft announced a new partnership agreement, with both parties set to receive a 30% stake in the upcoming for-profit company. This move positions OpenAI to advance its restructuring efforts amidst ongoing regulatory challenges.
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