OpenAI proposes public benefit corporation model to drive AI development
Live MintOpenAI, the artificial intelligence powerhouse founded in 2015 as a research-focused nonprofit, is exploring a significant organisational shift that could establish a more conventional revenue-generating corporation alongside its nonprofit foundation. In a blog post on Friday, the company’s board revealed it is evaluating a proposal to convert its business operations into a Delaware Public Benefit Corporation. Originally founded to ensure AI development prioritised safety and public benefit, the organisation introduced a for-profit subsidiary in 2019 to manage the immense costs of developing advanced AI models. Co-founder Elon Musk recently filed a lawsuit against OpenAI, alleging a breach of its original nonprofit agreement and seeking to prevent its conversion to a for-profit entity while legal proceedings continue.