As OpenAI still faces more than a dozen copyright lawsuits, it has finalized its conversion into a for-profit public benefit corporation in which a nonprofit, the OpenAI Foundation holds a $130 billion equity stake.
OpenAI Board of Directors Chair Bret Taylor explained the structure:
OpenAI was founded in 2015 as a nonprofit; its mission is to ensure artificial general intelligence benefits all of humanity. Today, OpenAI remains a nonprofit dedicated to that same mission.
The OpenAI Foundation controls the for-profit business, which was established in 2019, keeping our mission at the center. The for-profit is now a public benefit corporation, called OpenAI Group PBC—with the same mission as the OpenAI Foundation—which ensures the company’s mission and commercial success advance together. Learn more about our structure.
With our updated structure, announced on October 28, 2025:
* The nonprofit is now the OpenAI Foundation.
* The for-profit is now a public benefit corporation, called OpenAI Group PBC, which—unlike a conventional corporation—is required to advance its stated mission and consider the broader interests of all stakeholders, ensuring the company’s mission and commercial success advance together.
* The OpenAI Foundation continues to control the OpenAI Group and. It now holds conventional equity in OpenAI Group – with all stockholders participating proportionally in any increase in value of the OpenAI Group – aligning long-term incentives around impact and growth.
* OpenAI Foundation and OpenAI Group have the same mission.
This reportedly clears the path for OpenAI to offer an IPO.
CEO Sam Altman tweeted his thoughts in getting California AG Bonta’s approval for the change:
OpenAI reportedly expressed a commitment to stay in California.
California is my home, and I love it here, and when I talked to Attorney General Bonta two weeks ago I made clear that we were not going to do what those other companies do and threaten to leave if sued. We really wanted to figure this out and are really happy about where it all landed — and very much appreciate the work of the Attorney General!
Sam Altman