OpenAI plans to transition from a nonprofit to a public benefit corporation to secure AI development funding while retaining nonprofit oversight through independent share valuations.

Originally founded in 2015 as a nonprofit, OpenAI launched a for-profit arm in 2019 to address rising AI development costs.

The shift comes amid growing investment pressures, with OpenAI reportedly needing to raise US$6.6 billion and adjust profit limits for investors within two years.

Criticism has followed, including a lawsuit by co-founder Elon Musk alleging profit-focused motives and concerns raised by Meta to California’s attorney general.