Re:Evolving OpenAI's Structure
by pryce on Monday May 05, 2025 @10:24PM
(#43901258)
> "Our for-profit LLC, which has been under the nonprofit since 2019, will transition to a Public Benefit Corporation (PBC)–a purpose-driven company structure that has to consider the interests of both shareholders and the mission."
One remarkable advantage of being a "Public Benefit Corporation" is this it:
> prevent[s] shareholders from using a drop in stock value as evidence for dismissal or a lawsuit against the corporation[1]
In my view, it is their own shareholders that the directors of OpenAI are insulating themselves against.
One remarkable advantage of being a "Public Benefit Corporation" is this it:
> prevent[s] shareholders from using a drop in stock value as evidence for dismissal or a lawsuit against the corporation[1]
In my view, it is their own shareholders that the directors of OpenAI are insulating themselves against.
[1] https://en.wikipedia.org/wiki/Benefit_corporation