OpenAI is revising its corporate structure, converting its for-profit arm into a public-benefit corporation (PBC) while maintaining overall control under its nonprofit parent. The move is meant to preserve the company's mission while giving it more flexibility to raise the massive funding needed to scale, a goal CEO Sam Altman said could eventually require trillions of dollars.
But the updated plan hasn't yet cleared a key hurdle: Microsoft's approval. As OpenAI's largest investor with a $13.75 billion stake, Microsoft is still negotiating terms related to its equity, licensing rights, and revenue-sharing agreements. State attorneys general in California and Delaware must also weigh in on the legal framework.
Altman said the new structure balances mission alignment with investor needs and could still support OpenAI's $30 billion fundraising round. While other AI players like Anthropic and xAI already operate as PBCs, OpenAI's approach aims to keep the nonprofit in control of strategic decisions.
Meanwhile, Elon Musk's lawsuit against the company remains ongoing. Musk, who unsuccessfully offered to acquire OpenAI's nonprofit assets earlier this year, has argued that the company's move toward a profit-driven model violates its founding principles.
As OpenAI pushes ahead, it's walking a fine line between mission, governance, and the massive capital demands of the AI arms race.
The post Tech News: OpenAI's New Structure Hits a Microsoft-Sized Hurdle appeared first on PRISM MarketView.
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