On the 26th (local time), OpenAI, the developer of ChatGPT, announced that it is considering converting its existing for-profit subsidiary, which is controlled by a non-profit board, into a public corporation with "ordinary shares of stock."
OpenAI disclosed the contents of this corporate restructuring initiative to be pursued next year through its blog on the same day.
OpenAI has sought changes in its corporate structure to attract increasing investments to develop artificial general intelligence (AGI) as the necessity arises.
Established in 2015 as a non-profit organization with the ideal goal of building safe and beneficial AI for humanity, OpenAI altered its governance structure four years later, in 2019, by founding a for-profit subsidiary to cover the high expenses of AI model development, governed by a non-profit board.
In particular, driven by a dramatic investment of $66 billion (corporate value of $157 billion), the necessity for corporate restructuring has been raised to maximize investor revenue.
This corporate restructuring at OpenAI is interpreted as a means to manage a growing business and alleviate constraints posed by its current non-profit parent organization.
OpenAI noted, "We need to raise more capital once again," adding that "investors want to support us, but for that, a traditional stock structure and a less complex form are needed."
A public corporation (PBC) is a corporate structure that aims to achieve profit while contributing to society.
OpenAI explained, "The non-profit sector still exists and will maintain a significant equity in the public corporation," stating that the equity value will be fairly evaluated by independent financial experts, although the specific equity holdings were not disclosed.
Additionally, the public corporation (PBC) will manage and control OpenAI’s operations and business, while the non-profit sector will hire a leadership team and staff for charitable activities in fields such as healthcare, education, and science.
Reuters reported that AI startups Anthropic, regarded as a rival to OpenAI, and the AI company xAI owned by Elon Musk, CEO of Tesla, have similar structures.
OpenAI said, "(This structure) will allow us to raise the necessary capital just as other corporations in this field do."