SAN FRANCISCO, Sept 25 (Reuters) - ChatGPT-maker OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board, people familiar with the matter told Reuters, in a move that will make the company more attractive to investors.
Resolves YES if OpenAI's core business both
is no longer controlled by a non-profit board
is a for-profit corporation
Resolves NO otherwise.
Update 2025-10-28 (PST) (AI summary of creator comment): Regarding "controlled by a non-profit board": The creator clarifies that if the non-profit board only has indirect control through share ownership (rather than constitutional/governance authority), this will satisfy the condition that the for-profit is "no longer controlled by a non-profit board."
Previously, the for-profit was directly controlled and governed by the non-profit board without its own board. The key distinction is between:
Constitutional/governance control (old structure)
Indirect control via shareholding (acceptable for YES resolution)
1,000
3.00Interesting!
"The NFP will retain control and oversight over the newly formed PBC, including the sole power and authority to appoint members of the PBC Board of Directors, as well as the power to remove those Directors."
"PBC directors will be required to consider only the mission (and may not consider the pecuniary interests of stockholders or any other interest) with respect to safety and security issues related to the OpenAI enterprise and its technology."
Am only a lay person (and have traded in this market) but it seems fairly clear that the 'not-for-profit' has direct control over the 'for-profit' / Public Benefit Company through it's control of the board, not just its shareholding.
The other 'commitments' seem very aligned too.
https://news.delaware.gov/2025/10/28/ag-jennings-completes-review-of-openai-recapitalization/
Manifold aside, this seems like about as progressive an outcome as was ever likely. Let's hope it works out and inspires other tech companies to be more imaginative than just increasing shareholder value.
@DanBorthwick This seems like a very clear no? At least according to these resolution criteria.
@jim Looks like it comes down to how you interpret "is controlled by a non-profit board." CNBC reports the non-profit as having "a controlling stake" (26%) in OpenAI Group PBC. I'm not sure if that's the relevant sense of "control" here?
https://www.cnbc.com/2025/10/28/open-ai-for-profit-microsoft.html
@AlexSemendinger used to be the for-profit was controlled and governed by the nonprofit board. It didn't have its own board. If the non-profit board just has indirect control due to the amount of shares they hold, but doesn't constitutionally have ultimate authority, I'll consider that condition met
@jim "OpenAI has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives."
@JoshYou yes, it comes down to whether remaining in control simply means that they have majority voting rights from the shares they hold, or something more