OpenAI pursues public benefit structure to fend off hostile takeovers

finance
Created 10/9/2024
Updated 10/9/2024

OpenAI plans to restructure as a Public Benefit Corporation (PBC) to prevent hostile takeovers and shield CEO Sam Altman from external interference. The new structure, also used by rivals like Anthropic and xAI, prioritizes a public mission alongside shareholder interests, allowing more flexibility against pressure for short-term profits. This move comes amid rapid growth and internal challenges, including senior staff exits and tensions with co-founder Elon Musk. The PBC model is rare but growing in popularity for AI firms, aiming to protect mission-focused goals while attracting investment.

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