Charles Esther
On May 5, 2025, OpenAI CEO Sam Altman published a letter outlining significant structural changes at the company. The AI giant, which has revolutionized artificial intelligence, announced that it would maintain its nonprofit structure, despite transitioning its for-profit division into a Public Benefit Corporation (PBC).
OpenAI’s Mission and Evolving Structure
Altman started by emphasizing that OpenAI’s mission has always been clear: ensuring artificial general intelligence (AGI) benefits all of humanity. Since its inception, OpenAI has faced various challenges and changes, but the company’s core goal of democratizing AI remains unchanged.
The transformation in structure will enable OpenAI to raise the capital necessary to meet the growing demand for its services. This change will also support OpenAI’s mission to make AGI available to all, which, according to Altman, will require “hundreds of billions of dollars and may eventually require trillions.”
The Decision to Keep the Nonprofit in Control
Initially, OpenAI had considered transferring control away from its nonprofit to streamline its operations. However, after receiving feedback from civic leaders and engaging in discussions with the Attorneys General of California and Delaware, the company decided to keep its nonprofit at the helm.
The nonprofit will continue to control the newly-formed Public Benefit Corporation, allowing OpenAI to maintain its commitment to democratic AI. The decision to do so was influenced by the desire to ensure AI benefits the entire global community and not just a select few.
A New Public Benefit Corporation Model
Under the new structure, OpenAI’s for-profit division will transition into a PBC, a model that has already been adopted by other AGI labs such as Anthropic and X.ai. This move will simplify the company’s capital structure, which had previously been capped-profit and complicated. The PBC will allow everyone to own stock, marking a significant shift from the old model.
Despite this shift, the nonprofit will remain a controlling stakeholder in the PBC, allowing it to grow alongside the company. The nonprofit’s increased resources will be used to fund programs that ensure AI benefits various communities, including health, education, public services, and scientific discovery.
Focus on AI Safety and Alignment
As OpenAI scales up, safety and alignment are top priorities. The company has consistently worked on ensuring its systems are safe and transparent, with practices like red teaming and model specification. Altman reiterated that OpenAI is committed to addressing the potential risks posed by AGI and ensuring its alignment with human values.
The goal is for OpenAI to become the largest and most effective nonprofit in history, focusing on maximizing the positive impact of AI across the globe. The company’s evolution is designed to ensure that AGI can deliver the highest leverage outcomes for humanity.
The Path Ahead
Altman’s letter concludes by expressing excitement about the future. OpenAI’s shift to a PBC model and its continued commitment to being led by a nonprofit will allow the company to make faster, safer progress toward AGI. As Altman put it, creating AGI is a “brick in the path of human progress,” and OpenAI is eager to see what other contributions humanity can make to this shared goal.
OpenAI is positioning itself to not only continue advancing AI technology but also to ensure that it benefits everyone. With this new structure, the company hopes to build a future where AGI is accessible to all and its benefits are felt globally.
