OpenAI confirms plans to separate its nonprofit and for-profit arms

Zoom in: OpenAI offered details in a blog post on Friday on how the board is looking to restructure its for-profit and nonprofit arms.

• The nonprofit would have a significant ownership stake in the OpenAI business and would transform into a well-resourced entity that can pursue a range of scientific and philanthropic pursuits.
• OpenAI's business, meanwhile, would be transformed into a Delaware-chartered public benefit corporation.

What they're saying: "Our plan would result in one of the best resourced non-profits in history," OpenAI said in the blog post.

• "The non-profit's significant interest in the existing for-profit [operation] would take the form of shares in [OpenAI's business] at a fair valuation determined by independent financial advisors. This will multiply the resources that our donors gave manyfold."
• The new public benefit corporation, meanwhile, would be able to control its own destiny.

• "Our current structure does not allow the Board to directly consider the interests of those who would finance the mission and does not enable the non-profit to easily do more than control the for-profit," OpenAI said.

Yes, but: Musk, one of those early donors, has sued to stop such a move, while Meta has asked California's attorney general to investigate.