OpenAI Announces Final Company Structure Led By Nonprofit

OpenAI announced a new corporate structure on Monday. The startup explained that its nonprofit entity will remain the controlling stakeholder, while the for-profit arm will transition into a Public Benefit Corporation (PBC).

According to the announcement, the company’s mission will remain unchanged, and the decision was made in response to feedback from critics and experts.

4 facts about our structure:

-OpenAI will continue to be controlled by the current nonprofit

-Our existing for-profit will become a Public Benefit Corporation

-Nonprofit will control & be a significant owner of the PBC

-Nonprofit & PBC will continue to have the same mission

— OpenAI (@OpenAI) May 5, 2025

“We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California,” said Bret Taylor, Chair of the OpenAI Board of Directors. “We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission of ensuring AGI benefits all of humanity.”

OpenAI’s structural changes have drawn public attention in recent months—both for its plans to shift to a for-profit model and for Elon Musk’s lawsuits and attempted acquisition.

Sam Altman, OpenAI’s CEO, wrote a letter to employees and stakeholders that was included in OpenAI’s announcement.

“We are committed to this path of democratic AI. We want to put incredible tools in the hands of everyone,” states the letter. “We believe this is the best path forward—AGI should enable all of humanity to benefit each other. We realize some people have very different opinions.”

According to the New York Times, Elon Musk wasn’t the only one concerned about the direction OpenAI, considered the most influential AI company in the world, was taking. Multiple attorneys were monitoring the company’s changes, and the office of Rob Bonta, the California attorney general, said they were reviewing OpenAI’s for-profit plan.

Also, experts in academia were paying close attention. Geoffrey Hinton, a community expert who won a Nobel Prize in Physics last year for his AI research, expressed concerns over OpenAI’s direction in the past few months.

OpenAI made a recalculation to remain a hybrid company and—despite the alleged pressure from investors to convert to a traditional for-profit model—will maintain its core values. However, the specific details of the for-profit and nonprofit portions or the company’s current valuation have not been disclosed.

In March, OpenAI raised $40 billion, reaching a $300 billion valuation.