Microsoft backs OpenAI's shift to public benefit corporation
OpenAI, the team behind ChatGPT, is changing things up. Its nonprofit arm will now control a new public benefit corporation (PBC), putting mission over pure profit.
This shift could give the nonprofit a huge equity stake—over $100 billion if OpenAI hits its projected $500 billion valuation.
Microsoft is backing the plan and teaming up with OpenAI to focus on AI safety and innovation.
Regulators and Musk's lawsuit loom over the plan
This move isn't just about money—it's also about who gets to call the shots in AI's future.
Regulators in California and Delaware are reviewing the plan for impacts on safety and kids.
Meanwhile, Elon Musk is loudly against it, suing OpenAI for allegedly drifting from its nonprofit roots (which OpenAI denies).
The company says it's working to balance growth with real oversight.