OpenAI Considers Restructuring Amid Legal Challenges

According to Cointelegraph, OpenAI is contemplating a corporate restructuring to better align its nonprofit and for-profit divisions. The artificial intelligence developer, known for creating ChatGPT, has faced significant criticism and legal challenges since its 2019 decision to establish a for-profit business unit alongside its original nonprofit foundation. OpenAI is exploring the possibility of transforming its for-profit division into a Delaware Public Benefit Corporation (PBC), a legal framework that mandates balancing shareholder, stakeholder, and public benefit interests. This potential restructuring, detailed in a December 27 blog post, aims to facilitate capital raising under conventional terms similar to other companies in the sector. Additionally, it would allow the nonprofit arm to recruit a leadership team and staff dedicated to charitable initiatives in areas such as healthcare, education, and science. The controversy surrounding OpenAI's for-profit venture has been further fueled by a lawsuit filed by Tesla CEO Elon Musk, a co-founder of OpenAI. In 2024, Musk sued the AI developer's leadership, including CEO Sam Altman, alleging violations of the terms related to Musk's foundational contributions to the organization. The lawsuit claims that Altman manipulated Musk into co-founding what Musk describes as a "spurious nonprofit venture." OpenAI has defended its decision to create a for-profit entity, stating in a March blog post that it was essential for securing the capital needed to support the computational demands of AI models. Musk has since launched his own AI firm, xAI, which he claims is being undermined by OpenAI's anti-competitive practices. Meanwhile, David Sacks, the presumptive "White House AI and Crypto Czar" under President-elect Donald Trump, has criticized OpenAI's shift from nonprofit philanthropy to a for-profit entity. Sacks, who has close ties to Musk, expressed his disapproval in October, describing OpenAI's transformation as a move from "nonprofit philanthropy to piranha, for-profit company." Looking ahead, the role of AI agents, including those developed using ChatGPT models, is expected to expand significantly within decentralized communities by 2025. J.D. Seraphine, CEO of Web3 AI developer Raiinmaker, shared this outlook with Cointelegraph in December. Asset manager VanEck anticipates that over 1 million AI agents will be integrated into blockchain networks by the end of 2025.