OpenAI Finalizes Transition to For-Profit Structure
(MENAFN) On Tuesday, OpenAI announced that it has finished the process of transforming its main business into a for-profit corporation.
Delaware Attorney General Kathy Jennings approved OpenAI’s strategy to shift from a non-profit, which was founded in 2015, to a public benefit corporation—a for-profit entity intended to operate in the public interest.
The US-based artificial intelligence firm allocated a 27% stake to Microsoft, an early investor in OpenAI, while the non-profit parent that has overseen OpenAI since its inception holds a $130 billion share, which has the potential to increase in value.
This agreement resolves nearly a year of disputes involving the attorneys general of California and Delaware, investors, and philanthropic groups over whether OpenAI could maintain its mission while transitioning into a more conventional corporate structure.
The revised structure is anticipated to assist OpenAI in raising capital, recruiting talent, and potentially preparing for an initial public offering.
Jennings stated that she had no objections to the plan, effectively concluding more than a year of discussions regarding OpenAI’s governance and the distribution of power between its non-profit board and for-profit investors, while officials in Delaware and California had been evaluating the proposed changes.
“OpenAI has completed its recapitalization, simplifying its corporate structure,” Bret Taylor, chair of OpenAI’s board, noted in a blog post.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
