public benefit corporation

Expert panel will determine AGI arrival in new Microsoft-OpenAI agreement

In May, OpenAI abandoned its plan to fully convert to a for-profit company after pressure from regulators and critics. The company instead shifted to a modified approach where the nonprofit board would retain control while converting its for-profit subsidiary into a public benefit corporation (PBC). What changed in the agreement The revised deal extends Microsoft’s… Read More »

OpenAI scraps controversial plan to become for-profit after mounting pressure

The restructuring would have also allowed OpenAI to remove the cap on returns for investors, potentially making the firm more appealing to venture capitalists, with the nonprofit arm continuing to exist but only as a minority stakeholder rather than maintaining governance control. This plan emerged as the company sought a funding round that would value… Read More »