The world of artificial intelligence just got more complicated. OpenAI, once charting a clear course toward separating its profit-driven side from its nonprofit roots, has shifted direction entirely. The original vision, designed to keep advanced AI aligned with human benefit, now sits discarded. Instead, the organization is doubling down on a structure where its nonprofit arm remains firmly in charge while still exploring ways to function like a traditional corporation.
This pivot raises big questions about what comes next—especially when it comes to the possibility of an initial public offering. Under the new setup, OpenAI’s nonprofit would hold significant ownership in a public benefit corporation (PBC), a move that could eventually pave the way for going public. Given the organization’s rapid growth, high operational expenses, and widespread fascination with its work, an IPO seems like a logical next step—but the path is far from straightforward.
Corporate governance expert Stephen Diamond points out that while PBCs can issue stock, the real hurdle lies in what exactly investors would be buying. If OpenAI’s most valuable assets—its intellectual property—remain under nonprofit control, the appeal of shares could diminish.
Without ownership of the core technology, what’s left for public investors?
Diamond asks.
The uncertainty doesn’t end there. OpenAI’s spokesperson has clarified that the nonprofit will retain authority over key innovations, meaning shareholders would have minimal influence over major decisions. Rose Chan Loui, a nonprofit law specialist, highlights how unusual this setup would be. Unlike typical corporate investments, buying into OpenAI would mean accepting limited power over the company’s direction.
This isn’t a standard IPO scenario,
Loui explains.
While the door to going public remains open in theory, the practical challenges could keep it shut for a long time.