OpenAI Wants to Create a PBC. What Does That Mean?: QuickTake

After months of back-and-forth with regulators and stakeholders, OpenAI said it’s getting closer to converting into a more traditional, for-profit company – a key step in its bid to secure billions more in capital to build cutting-edge artificial intelligence products.

As part of the restructuring, the ChatGPT owner intends to form a “public benefit corporation” that’s meant to be more appealing to investors. The overall business would continue to be overseen by OpenAI’s nonprofit entity, which would receive an equity stake of more than $100 billion in the new corporation.

OpenAI has faced pushback from former employees, academics and rivals ...