One of OpenAI’s co-founders, billionaire Elon Musk, has filed for an injunction to halt the company’s transition to a for-profit, accusing OpenAI of abandoning its original philanthropic mission. Musk has also alleged that OpenAI has deprived his own AI company, xAI, of capital by extracting promises from investors not to fund it.

ChatGPT maker OpenAI said it needs to raise more capital than expected, and laid out plans for transitioning toward a for-profit structure.

OpenAI has announced its intention to shift into a for-profit entity, marking a significant milestone in its evolution. According to a recent update from its board, the company plans to transfer operational control to a newly established for-profit division while maintaining elements of its nonprofit origins.

OpenAI on Friday outlined plans to revamp its structure, saying it would create a public benefit corporation to make it easier to "raise more capital than we'd imagined," and remove the restrictions imposed on the startup by its current nonprofit parent.

OpenAI is getting a corporate makeover. The ChatGPT maker revealed in a company blog post (via The New York Times) that it plans to undergo some changes at the structural level soon. Specifically, OpenAI will become a Public Benefit Corporation,

OpenAI has laid out plans to become a for-profit company. In a blog post published on Friday, OpenAI’s board said it will replace the company’s existing structure with one that puts control into the hands of its for-profit arm.

OpenAI on Friday laid out a plan to revamp its corporate structure next year, saying it would create a public benefit corporation to manage its growing business and ease the restrictions imposed by its current non-profit parent.