OpenAI Is Creating a PBC. What Does That Mean?: QuickTake

After months of back-and-forth with regulators and stakeholders, OpenAI said it has completed the process of restructuring as 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.

With the restructuring, the ChatGPT owner is forming a “public benefit corporation” that’s meant to be more appealing to investors. The overall business will continue to be overseen by OpenAI’s nonprofit entity, which is set to receive an initial equity stake worth roughly $130 billion in the new corporation.

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