OpenAI has revealed its intention to transition into a for-profit company.

OpenAI has announced plans to shift to a new structure that gives control to its for-profit division. In a blog post published Friday, the company’s board outlined its plan to transition into a Public Benefit Corporation (PBC) by 2025. This PBC will oversee OpenAI’s operations and business, while the nonprofit arm will retain an ownership stake but lose its governance role.

The nonprofit will continue its efforts independently with its own leadership team, focusing on charitable initiatives in areas like healthcare, education, and science. According to the board, this new structure will allow OpenAI to secure the capital needed to advance artificial general intelligence while also supporting the nonprofit’s mission, potentially making it one of the best-funded nonprofits in history. Competitors like Anthropic and Elon Musk’s xAI also operate as PBCs.

The move to a for-profit model has been widely speculated as OpenAI seeks to attract investors and raise funds to maintain its resource-intensive AI models. In September, reports suggested CEO Sam Altman would receive a 7% equity stake in the company as part of the transition, though Altman reportedly denied this. The board emphasized that the significant investments from major companies into AI development demonstrate the scale of funding required for OpenAI to continue its mission.

Under the new structure, the nonprofit will receive shares in the PBC, valued by independent financial advisors. The concerns about the nonprofit’s oversight were highlighted last year when Altman was briefly ousted and then reinstated.

Despite these changes, OpenAI may face opposition. Last month, Elon Musk filed a motion to block the transition to a for-profit entity, and Meta CEO Mark Zuckerberg has also urged California’s Attorney General to intervene.