OpenAI Drops For-Profit Plans, Will Transition to Non-Profit-Governed Public Benefit Corporation

OpenAI has announced it will not convert into a traditional for-profit company, following legal consultations and external feedback. Instead, the firm will transition its commercial arm into a Public Benefit Corporation (PBC), ending its 100x profit cap and allowing more investor returns while maintaining its non-profit governance structure. The non-profit entity will continue to govern the PBC.

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