OpenAI PBC released from nonprofit control by end 2027
4
1kṀ547
2027
64%
chance

The Delaware AG released a statement of no objection to OpenAI's restructure. By all indications, OpenAI is keen to move away from their nonprofit roots, and this new change may be merely a stepping stone to escaping their shackles.

Here's the thing, PBCs are for-profit entities and aren't bound to nearly the same scrutiny and oversight as nonprofits. With this new structure, it's entirely possible for the nonprofit parent to divest, sell, or release the for-profit subsidiary, and then for that PBC to later restructure. They've already got a 27% share owned by the for-profit Microsoft out the gate! Sure, there'd probably be a limp remnant of an advisory board from the nonprofit, but that'd be all that was left. And guess what, they have at least a year of dual control to make whatever initial moves they want:

Within one year of the recapitalization, the NFP Board will have at least two directors (including the Chair of the Safety and Security Committee) who will not serve on the PBC Board.

and new changes may end up only needing "advance notice":

The Attorney General will be provided with advance notice of significant changes in corporate governance.

However, there's a chance the government can or will compel nondivestiture by the nonprofit, but how likely is that in this current political climate?

Will they start this process? Resolves YES if the PBC is freed from the nonprofit's control by any means, NO if not.

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changed "EOY" to "end" in title to reduce density. still has the same meaning

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