OpenAI forecasts $29.4 billion revenue by 2026

OpenAI has announced it will maintain its nonprofit status, reversing earlier plans to overhaul its corporate structure into a for-profit entity.

According to a May 5 statement, OpenAI will keep its for-profit Public Benefit Corporation (PBC) under the control of the nonprofit, ensuring that its social mission remains a priority alongside business interests.

“OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit. Going forward, it will continue to be overseen and controlled by that nonprofit,” CEO Sam Altman told employees, according to the company’s communication.

This move comes after prior discussions in 2024 about converting to a traditional for-profit model to attract the significant funding needed for AI development, which Altman said “currently requires hundreds of billions of dollars and may eventually require trillions of dollars.”

OpenAI’s nonprofit branch will continue to operate independently, focusing on charitable initiatives in healthcare, education, and science, while the PBC pursues technological innovation and growth.

The company’s leadership projects substantial financial growth, with revenue expected to reach $12.7 billion in 2025 and $29.4 billion in 2026, as reported by Bloomberg.

In March, OpenAI reportedly raised $40 billion from Softbank at a $300 billion valuation.

The decision to remain nonprofit follows legal and public scrutiny, including a lawsuit from cofounder Elon Musk, who alleged that Altman and others manipulated the original nonprofit mission.

“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’s board stated, despite these controversies.

The organisation’s structure remains complex, with the nonprofit OpenAI Inc. overseeing various subsidiaries, including the capped-profit OpenAI Global LLC, which has received significant investments from Microsoft.

OpenAI’s approach is intended to balance the need for large-scale funding with its commitment to prioritising societal benefit in AI development.