OpenAI Plans a Major Change

OpenAI, the maker of ChatGPT, might shake things up. It’s thinking about turning its for-profit division into a Delaware Public Benefit Corporation (PBC), a setup that balances making money with helping the public.*

What’s the Deal?

In 2019, OpenAI added a for-profit arm to its nonprofit foundation. That decision has been controversial, leading to lawsuits and backlash. The new plan could help the company better connect its nonprofit goals with its business side.

OpenAI says the change would:

Help raise money more easily.

Allow its nonprofit side to focus on charity work, like improving healthcare and education.

Musk vs. OpenAI

Elon Musk, who co-founded OpenAI, sued the company in 2024. He says they misused his early support and tricked him into helping create the nonprofit before adding a for-profit branch. Musk now runs xAI, a competing AI company, and has accused OpenAI of unfair practices.

What’s Next for AI?

Critics like David Sacks, a Musk ally and the incoming White House AI and Crypto Czar, have slammed OpenAI’s shift toward profits. Meanwhile, experts predict AI tools will play a bigger role in blockchain networks, with over a million AI agents expected by 2025.