As OpenAI prepares for its transition from a nonprofit to a for-profit entity, the company has announced that it will be assembling a group of experts to help its philanthropic arm identify the most pressing and complex issues faced by nonprofits today. This initiative is part of OpenAI’s effort to understand the needs of the nonprofit sector as it convenes a commission to guide its philanthropic endeavors.

The expert group, which will comprise leaders and representatives from the fields of health, science, education, and public services, particularly in OpenAI’s home state of California, is expected to be announced in April. The group will provide insights to OpenAI’s board of directors within the next 90 days, informing the company’s philanthropic strategy as it navigates its transition to a for-profit model.

According to OpenAI, the board of directors will consider the insights and recommendations from the expert group as it continues to evolve the company’s nonprofit arm over the coming months. “The Board recognizes the importance of engaging with the philanthropic community and those closest to the work to help inform how OpenAI’s philanthropy can best deploy its potentially historic resources,” the company stated in a blog post. The goal is to ensure that OpenAI’s philanthropy is well-positioned to make a meaningful impact, and the board will carefully consider the expert group’s feedback in its decision-making process, with the aim of completing the evolution of the nonprofit arm well before the end of 2025.

OpenAI was initially founded as a nonprofit research laboratory in 2015. However, as its research endeavors became increasingly capital-intensive, the company adopted a new structure, allowing it to secure outside investments from venture capital firms and companies, including Microsoft. This shift enabled OpenAI to access the necessary funding to support its research and development efforts.

Currently, OpenAI operates a for-profit organization controlled by a nonprofit entity, with a capped profit share for investors and employees. Nevertheless, as indicated in the company’s blog post, OpenAI intends to transition its existing for-profit entity into a traditional corporation with ordinary shares of stock. As part of this transition, the nonprofit arm is expected to receive billions of dollars in exchange for ceding control, marking a significant shift in the company’s structure and operations.

The stakes are high for OpenAI to complete this conversion in a timely manner. If the company fails to meet the deadline by the end of the year, one of its key backers, SoftBank, may reclaim billions of dollars in pledged capital, which could have significant implications for OpenAI’s future plans and operations. The company is therefore working to ensure a smooth transition and complete the conversion as efficiently as possible.