OpenAI Considers Restructuring Amid Nonprofit Origins Scrutiny

OpenAI Considers Restructuring Amid Nonprofit Origins Scrutiny

1 minute read
Updated 2 months ago

Corporate Structure and Valuation

, valued at $157 billion, is rumored to be considering a shift to a public benefit corporation, sparking interest from nonprofit tax experts due to its complex nonprofit-for-profit structure.

The potential restructuring raises questions about asset valuation and control, with experts suggesting OpenAI might need to pay fair market value for assets if shifting control from its nonprofit arm.

Regulatory and Legal Challenges

Any change in OpenAI's corporate structure would need to navigate complex tax-exempt organization laws, with scrutiny expected from the and state attorneys general.

OpenAI's evolution from a nonprofit with a mission to benefit humanity to a for-profit with significant commercial ambitions has drawn attention, leading to questions about compliance with nonprofit regulations.
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