Going into 2025, OpenAI plans to become a Public Benefit Corporation⁠ (PBC), which is a for-profit company meant to operate for the good of society. This division will “run and control OpenAI’s operations and business,” while OpenAI’s nonprofit will retain a stake in the business but lose its oversight role.

OpenAI said it will be restructured as a public benefit corporation, and the nonprofit that controls the organization would receive shares in the new company.

One of OpenAI’s co-founders, billionaire Elon Musk, has filed for an injunction to halt the company’s transition to a for-profit, accusing OpenAI of abandoning its original philanthropic mission. Musk has also alleged that OpenAI has deprived his AI company, xAI, of capital by extracting promises from investors not to fund it.

The corporate transition will allow OpenAI to raise more money and finally give its board the freedom to consider what its investors want.

OpenAI on Friday laid out a plan to revamp its corporate structure next year, saying it would create a public benefit corporation to manage its growing business and ease the restrictions imposed by its current non-profit parent.

The move] would enable us to raise the necessary capital with conventional terms like others in this space.” As part of the transformation, OpenAI’s nonprofit division would retain a stake in the for-profit unit in the form of shares “at a fair valuation determined by independent financial advisors,