India, May 6 -- OpenAI is changing its corporate structure in a major shift aimed at supporting its long-term mission to develop artificial general intelligence (AGI) that benefits all of humanity. CEO Sam Altman announced the move in an open letter to employees, confirming that OpenAI's for-profit arm will convert into a Public Benefit Corporation (PBC).

The restructuring brings OpenAI closer to the frameworks used by peers such as Anthropic and xAI. The new PBC model replaces the company's complex capped-profit structure with a traditional equity model, while maintaining nonprofit OpenAI Inc.'s full control over the for-profit entity.

The nonprofit parent will be one of the largest shareholders in the PBC. Independent advisors will as...