OpenAI’s New Structure Aims to Attract Billions While Preserving Mission

By
Rahul
-
0
7
OpenAI’s New Structure Aims to Attract Billions While Preserving Mission

Monday, 05/05/2025 | 20:58 GMT by
Jared Kirui

  • The new setup aims to preserve the AI giant’s mission of serving the public good while enabling major fundraising efforts.
  • Elon Musk filed a lawsuit against the company, claiming it has strayed from its original nonprofit mission.

openAI

After months of internal debate, public scrutiny, and
a lawsuit from Elon Musk, OpenAI has chosen a hybrid structure that keeps its
nonprofit parent in charge while inviting investments into its for-profit
arm, Reuters reported.

A Structure Born of Compromise

Rather than fully converting into a traditional
for-profit company, OpenAI said it will transform its for-profit subsidiary
into a public benefit corporation.

The company expects this structure to allow it to
pursue large-scale investments, such as a potential $40 billion funding round
led by SoftBank while keeping ultimate control in the hands of its nonprofit
overseers.

The goal: maintain focus on the public good while
accessing the capital needed to remain competitive in the race toward
artificial general intelligence. OpenAI’s board chair Bret Taylor called the
new structure “extremely close” to the existing one.

The structural overhaul may not defuse all of OpenAI’s
challenges. Elon Musk, who co-founded the organization and now runs rival firm
xAI, has sued OpenAI, accusing it of betraying its original mission. His
lawsuit, which targets the shift toward a profit-oriented model, remains active
and is scheduled for trial in 2026.

Tensions With Musk and a Looming Trial

Adding more intrigue, Musk reportedly led a consortium
that offered $97.4 billion to acquire OpenAI earlier this year, a bid rejected
outright by Altman.

OpenAI’s shift to a public benefit corporation is
designed to balance shareholder returns with long-term public impact. Unlike
traditional corporations that focus solely on profit, benefit corporations have
a legal obligation to consider social goals. Still, critics question how the
nonprofit will manage asset allocation and ensure that commercial objectives
don’t dilute the mission.

Microsoft, a major backer of OpenAI, declined to
comment on the restructuring. However, the tech giant’s continued support is
widely seen as crucial to OpenAI’s future. SoftBank, which reportedly leads the massive $40 billion fundraising push, has yet to respond publicly, but Altman indicated the
new setup should not disrupt those talks.

With capital needs rising and competition
intensifying, OpenAI’s leadership has crafted a compromise. Whether this
structure can hold under the pressure of rapid AI development and growing
external scrutiny remains to be seen.

After months of internal debate, public scrutiny, and
a lawsuit from Elon Musk, OpenAI has chosen a hybrid structure that keeps its
nonprofit parent in charge while inviting investments into its for-profit
arm, Reuters reported.

A Structure Born of Compromise

Rather than fully converting into a traditional
for-profit company, OpenAI said it will transform its for-profit subsidiary
into a public benefit corporation.

The company expects this structure to allow it to
pursue large-scale investments, such as a potential $40 billion funding round
led by SoftBank while keeping ultimate control in the hands of its nonprofit
overseers.

The goal: maintain focus on the public good while
accessing the capital needed to remain competitive in the race toward
artificial general intelligence. OpenAI’s board chair Bret Taylor called the
new structure “extremely close” to the existing one.

The structural overhaul may not defuse all of OpenAI’s
challenges. Elon Musk, who co-founded the organization and now runs rival firm
xAI, has sued OpenAI, accusing it of betraying its original mission. His
lawsuit, which targets the shift toward a profit-oriented model, remains active
and is scheduled for trial in 2026.

Tensions With Musk and a Looming Trial

Adding more intrigue, Musk reportedly led a consortium
that offered $97.4 billion to acquire OpenAI earlier this year, a bid rejected
outright by Altman.

OpenAI’s shift to a public benefit corporation is
designed to balance shareholder returns with long-term public impact. Unlike
traditional corporations that focus solely on profit, benefit corporations have
a legal obligation to consider social goals. Still, critics question how the
nonprofit will manage asset allocation and ensure that commercial objectives
don’t dilute the mission.

Microsoft, a major backer of OpenAI, declined to
comment on the restructuring. However, the tech giant’s continued support is
widely seen as crucial to OpenAI’s future. SoftBank, which reportedly leads the massive $40 billion fundraising push, has yet to respond publicly, but Altman indicated the
new setup should not disrupt those talks.

With capital needs rising and competition
intensifying, OpenAI’s leadership has crafted a compromise. Whether this
structure can hold under the pressure of rapid AI development and growing
external scrutiny remains to be seen.

Jared Kirui

  • 1898 Articles
  • 35 Followers

Jared is an experienced financial journalist passionate about all things forex and CFDs.

  • 1898 Articles
  • 35 Followers

Finance Magnates Daily Update

Get all the top financial news delivered straight to your inbox. Stay informed, stay ahead.

Keep Reading

More from the Author

Trending

Featured Videos

Trading with XM: What You Need to Know | Full Review by Finance Magnates


Trading with XM: What You Need to Know | Full Review by Finance Magnates

Trading with XM: What You Need to Know | Full Review by Finance Magnates


Trading with XM: What You Need to Know | Full Review by Finance Magnates

In this video, we take a closer look at XM (@xmglobal ) a globally recognized online broker, serving over 15 million clients worldwide. We cover their trading model, account types, fees, and the different instruments available for trading. You’ll also learn about XM’s regulation, security, educational tools, and how their platforms work.

Watch the full video to get a detailed review and find out if XM is right for your trading style.

👉 Don’t forget to check out the full XM Review Listing on the Finance Magnates Directory at: https://directory.financemagnates.com/forex-brokers/xmcom/

#XM #XMReview #Forex #FinanceMagnates #ForexBroker #forexreview #xmbrokerreview


In this video, we take a closer look at XM (@xmglobal ) a globally recognized online broker, serving over 15 million clients worldwide. We cover their trading model, account types, fees, and the different instruments available for trading. You’ll also learn about XM’s regulation, security, educational tools, and how their platforms work.

Watch the full video to get a detailed review and find out if XM is right for your trading style.

👉 Don’t forget to check out the full XM Review Listing on the Finance Magnates Directory at: https://directory.financemagnates.com/forex-brokers/xmcom/

#XM #XMReview #Forex #FinanceMagnates #ForexBroker #forexreview #xmbrokerreview

In this video, we take a closer look at XM (@xmglobal ) a globally recognized online broker, serving over 15 million clients worldwide. We cover their trading model, account types, fees, and the different instruments available for trading. You’ll also learn about XM’s regulation, security, educational tools, and how their platforms work.

Watch the full video to get a detailed review and find out if XM is right for your trading style.

👉 Don’t forget to check out the full XM Review Listing on the Finance Magnates Directory at: https://directory.financemagnates.com/forex-brokers/xmcom/

#XM #XMReview #Forex #FinanceMagnates #ForexBroker #forexreview #xmbrokerreview


In this video, we take a closer look at XM (@xmglobal ) a globally recognized online broker, serving over 15 million clients worldwide. We cover their trading model, account types, fees, and the different instruments available for trading. You’ll also learn about XM’s regulation, security, educational tools, and how their platforms work.

Watch the full video to get a detailed review and find out if XM is right for your trading style.

👉 Don’t forget to check out the full XM Review Listing on the Finance Magnates Directory at: https://directory.financemagnates.com/forex-brokers/xmcom/

#XM #XMReview #Forex #FinanceMagnates #ForexBroker #forexreview #xmbrokerreview


More Videos

  • Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

    Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

    Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

    Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

    Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

    Introducing iFX EXPO LATAM 2025


    Introducing iFX EXPO LATAM 2025

  • Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

    Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

    Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

    Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

    Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

    Crowd at iFX EXPO LATAM 2025


    Crowd at iFX EXPO LATAM 2025

  • Maximising Broker Growth with B2CORE’s IB Module


    Maximising Broker Growth with B2CORE’s IB Module

    Maximising Broker Growth with B2CORE’s IB Module


    Maximising Broker Growth with B2CORE’s IB Module

    Maximising Broker Growth with B2CORE’s IB Module


    Maximising Broker Growth with B2CORE’s IB Module

    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!


    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!


    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!


    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.

    Discover how B2Core streamlines IB management, from efficient trader onboarding and automated commission tracking to providing IBs with powerful tools for growth. Morgan also addresses common challenges in scaling IB networks and showcases a real-world case study demonstrating B2Core’s impact.

    📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today: 🔗 LinkedIn: / financemagnates
    👍 Facebook: / financemagnates
    📸 Instagram: / financemagnates_official
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemag…
    ▶️ YouTube: / @financemagnates_official #B2Core #IBProgram #Brokerage #FinTech #PartnerProgram #AffiliateMarketing #FinancialServices

    Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

  • Elevate Your Visibility in Africa’s Trading Hub


    Elevate Your Visibility in Africa’s Trading Hub

    Elevate Your Visibility in Africa’s Trading Hub


    Elevate Your Visibility in Africa’s Trading Hub

    Elevate Your Visibility in Africa’s Trading Hub


    Elevate Your Visibility in Africa’s Trading Hub

    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025


    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025

    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025


    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025

    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025


    🚀 Africa’s online trading industry is evolving fast—will you be at the forefront? 🌍

    FMAS:25 is where top industry leaders, fintech innovators, and traders connect.🔥Don’t miss the opportunity to showcase your brand in Africa’s trading hub. Secure your spot today! ⏳

    🔗 Exhibit Now 👉 https://events.financemagnates.com/event/FMAS25/exhibit-sponsor

    #fmas25 #fintech #onlinetrading #forextrading #networking #finance #capetown #southafrica #summit #exhibitors #may2025

LEAVE A REPLY

Please enter your comment!
Please enter your name here