OpenAI announced that in 2025, it will transition to a for-profit structure by creating a public benefit corporation (PBC) to manage its commercial operations, removing some nonprofit restrictions.

This move is aimed at raising more capital to compete in the rapidly growing AI market, where major companies are investing billions.

OpenAI, valued at $157 billion, faces significant losses despite $3.7 billion in revenue this year.

By adopting the PBC model, OpenAI can pursue high-growth operations while maintaining a nonprofit arm for charitable activities, CNBC has reported.

The change will allow OpenAI to raise capital more easily, similar to its competitors in the AI space.

Written by B.C. Begley