01:38 PM EST, 12/27/2024 (MT Newswires) -- Microsoft ( MSFT )-backed (MSFT) OpenAI outlined a plan to change its for-profit operations into a public benefit corporation as it seeks to raise additional capital.

The parent of generative artificial intelligence chatbot ChatGPT said Thursday that the plan is part of an evaluation of its corporate structure to "best support the mission of ensuring artificial general intelligence benefits all of humanity." The public benefit corporation structure requires the company to balance shareholder and public interests, according to OpenAI.

The company needs to become "more than a lab and a startup" as it enters the new year, OpenAI said. "Our plan is to transform our existing for-profit into a Delaware public benefit corporation with ordinary shares of stock and the OpenAI mission as its public benefit interest," it said. "It will enable us to raise the necessary capital with conventional terms like others in this space."

In October, the company said it closed a $6.6 billion funding round at a $157 billion post-money valuation. Thrive Capital reportedly led the round with a $1.25 billion stake, with other investors including technology giant Microsoft ( MSFT ).

OpenAI said Thursday that more than 300 million people use ChatGPT every week, with most of them using the product for free. The company is facing growing competition in the AI space, according to a statement.

"The hundreds of billions of dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission," the company said. "We once again need to raise more capital than we'd imagined. Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness."

OpenAI said it plans to make its nonprofit arm sustainable. The proposed public benefit corporation will run and control the company's operations, while the nonprofit arm will hire a leadership team and staff to explore charitable initiatives, according to the company.

"The nonprofit's significant interest in the existing for-profit would take the form of shares in the (public benefit corporation) at a fair valuation determined by independent financial advisers," OpenAI said. "This will multiply the resources that our donors gave manifold."

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