OpenAI is contemplating a corporate restructuring aimed at better coordination between its nonprofit and for-profit branches. This decision follows substantial backlash, including lawsuits, against its 2019 establishment of a for-profit business alongside its original nonprofit foundation. OpenAI is exploring the transformation of its for-profit unit into a Delaware Public Benefit Corporation (PBC), a legal form that obligates companies to consider public benefit alongside stakeholder and shareholder interests. The restructuring is expected to facilitate capital acquisition on conventional terms and allow the nonprofit to hire a dedicated leadership team to advance charitable efforts in sectors such as healthcare, education, and science. The controversy surrounding OpenAI's for-profit model escalated with a lawsuit from co-founder Elon Musk, who claims that CEO Sam Altman misled him regarding the organization’s intent from its inception. This comes as Musk has launched his own AI enterprise amidst critiques of OpenAI's competitive practices.

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