"OpenAI said Tuesday it has reorganized its ownership structure and converted its business into a public benefit corporation and that two crucial regulators, the Delaware and California attorneys general, said they would not oppose the plan. The restructuring paves the way for the ChatGPT maker to more easily profit off its artificial intelligence technology even as it remains technically under the control of a nonprofit."
"The company also said it has signed a new agreement with its longtime backer Microsoft that gives the software giant a roughly 27% stake in OpenAI's new for-profit corporation but changes some of the details of their close partnership. The attorneys general of Delaware, where OpenAI is incorporated, and California, where it is headquartered, had both said they're investigating the proposed changes."
"OpenAI said it completed its restructuring "after nearly a year of engaging in constructive dialogue" with the offices in both states. "OpenAI has completed its recapitalization, simplifying its corporate structure," said a blog post Tuesday from Bret Taylor, the chair of OpenAI's board of directors. "The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.""
OpenAI reorganized its ownership and converted its business into a public benefit corporation while maintaining nonprofit control over the new for-profit entity. Delaware and California attorneys general said they would not oppose the plan after months of engagement and investigation. OpenAI signed a new agreement with Microsoft granting the company about a 27% stake in the for-profit corporation and adjusting partnership details. OpenAI completed the recapitalization after nearly a year of dialogue, stating the nonprofit remains in control and now has a direct path to major resources ahead of anticipated AGI development.
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