[OpenAI]

OpenAI's for-profit arm is becoming a Delaware Public Benefit Corporation:

"Our plan is to transform our existing for-profit into a Delaware Public Benefit Corporation⁠(opens in a new window) (PBC) with ordinary shares of stock and the OpenAI mission as its public benefit interest. The PBC is a structure⁠(opens in a new window) used⁠ by⁠(opens in a new window) many⁠(opens in a new window) others⁠(opens in a new window) that requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decisionmaking. It will enable us to raise the necessary capital with conventional terms like others in this space."

In other words, OpenAI wants access to the standard venture vehicles available to other tech companies. That makes sense, but it also implies a funding crunch - if not now, then potentially in its future. If it needs further billions of dollars in order to compete, with profitability or an exit nowhere in sight, it's worth asking where the value really is and whether this sector is anything more than a giant bubble.

#AI

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