OpenAI said it will be restructured as a public benefit corporation, and the nonprofit that controls the organization would receive shares in the new company.

Going into 2025, OpenAI plans to become a Public Benefit Corporation⁠ (PBC), which is a for-profit company meant to operate for the good of society. This division will “run and control OpenAI’s operations and business,” while OpenAI’s nonprofit will retain a stake in the business but lose its oversight role.

One of OpenAI’s co-founders, billionaire Elon Musk, has filed for an injunction to halt the company’s transition to a for-profit, accusing OpenAI of abandoning its original philanthropic mission. Musk has also alleged that OpenAI has deprived his AI company, xAI, of capital by extracting promises from investors not to fund it.

OpenAI on Friday laid out a plan to revamp its corporate structure next year, saying it would create a public benefit corporation to manage its growing business and ease the restrictions imposed by its current non-profit parent.

OpenAI is planning to convert its for-profit arm to a public benefit corporation in Delaware "with ordinary shares of stock."

Key Takeaways Artificial intelligence startup OpenAI said it needs to raise more capital than expected, and laid out plans for transitioning toward a for-profit structure next year. The ChatGPT maker said its existing for-profit division will become a corporation with ordinary shares of stock.