What OpenAI’s restructuring plan means for its corporate future

OpenAI said on Monday it is pursuing a new restructuring plan after conversations with Delaware and California’s attorneys general, both of whom were closely watching as OpenAI tried to break free of its odd corporate structure. Currently, OpenAI’s nonprofit board governs the organization’s for-profit operations. Under the new plan, OpenAI’s for-profit arm will become a public benefit corporation (PBC), but will still be controlled by OpenAI’s nonprofit. The new restructuring plan may be enough to appease regulators and OpenAI’s investors, who’ve poured billions into the company in expectation of a return someday. But it could also throw a wrench into OpenAI’s future plans, particularly if the company seeks to one day go public. The IPO route Last December, OpenAI outlined a path that would’ve allowed it to spin its for-profit arm out from under the control of its nonprofit board, which is bound by certain obligations, including a clause in its charter to ensure that artificial gen ... Read full article.