OpenAI announced a restructuring plan following discussions with the attorneys general of Delaware and California. The plan involves transforming OpenAI’s for-profit arm into a public benefit corporation (PBC), still governed by its nonprofit entity. This move may satisfy regulators and investors but complicates potential future IPO plans.
The IPO path remains uncertain due to the control of critical intellectual property by the nonprofit arm. Corporate governance experts suggest that shareholders in an IPO scenario would have limited influence over company decisions. Pressure from former employees, key investors like Microsoft, and Elon Musk further influences OpenAI’s restructuring process. Musk’s lawsuit against OpenAI highlights concerns over the company’s deviation from its original nonprofit mission.
— new from TechCrunch