Ever since OpenAI filed its initial paperwork to become a publicly traded company, the headlines about the historic nature of this IPO, and the billions OpenAI could raise have continued pouring in. While there is no shortage of news coverage, it’s missing key details any savvy investor would want to know.
In OpenAI, investors aren’t investing in a typical corporation—they’re putting money into a company that’s ultimately controlled by a 501(c)(3) charitable nonprofit. With this unconventional and unprecedented structure—OpenAI will be the first 501(c)(3) charity to take a controlled entity public—comes a growing mountain of unresolved legal questions, undisclosed conflicts, and governance risks that could backfire on shareholders at any moment.
