OpenAI’s $157 billion worth and rising AI development costs pushed it toward a structure that can tap into deeper capital.
OpenAI, one of the world’s most valuable startups, originally began in 2015 as a nonprofit focused on AI research. But as the cost of achieving artificial general intelligence (AGI)—AI that could surpass human intelligence—soars, the company is shifting gears to attract more funding. On December 26, OpenAI announced in a blog post that it plans to set up a public benefit corporation (PBC) for its commercial operations, while keeping its nonprofit arm focused on charitable initiatives.
