"After some tense months while the company was under investigation by the state attorney general's office, OpenAI announced Tuesday that it had completed its restructuring, with its nonprofit arm, the OpenAI Foundation, in control of its for-profit business. There was a threat that got leaked to the Wall Street Journal last month that OpenAI executives were seriously considering relocating the company out of state, with Attorney General Rob Bonta's office investigating and questioning the company's plan to restructure as a for-profit public benefit corporation."
"The change, which it characterizes as a recapitalization, gives the OpenAI Foundation an equity stake in the for-profit company, and that stake is currently valued at $130 billion which, as the Chronicle points out, makes it "one of the world's wealthiest nonprofits." According to the announcement, the foundation will begin by committing $25 billion to two separate projects: funding scientific work to cure diseases, and creating a "resilience layer" for AI security and safety."
OpenAI completed restructuring with its nonprofit arm, the OpenAI Foundation, controlling the for-profit business. The for-profit entity was recapitalized into a public benefit corporation named OpenAI Group PBC that shares the foundation's mission to ensure artificial general intelligence benefits all humanity. The foundation received an equity stake currently valued at $130 billion. Attorney General Rob Bonta's office investigated the planned restructuring and considered legal action, but will not challenge the completed restructuring in court. The foundation will commit $25 billion to two projects: funding scientific work to cure diseases and creating a resilience layer focused on AI security and safety.
#openai-restructuring #nonprofit-governance #public-benefit-corporation #ai-safety-and-healthcare-funding
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