OpenAI spent 2024–25 working with regulators on a plan to convert its capped‑profit subsidiary into a standard equity structure and for‑profit public benefit corporation (PBC), while facing lawsuits and scrutiny over the treatment of its nonprofit assets. (arstechnica.com)

On 28 October 2025 OpenAI announced and implemented a new structure: the original nonprofit became the OpenAI Foundation and the operating business became OpenAI Group PBC, a for‑profit corporation with ordinary stock, majority investor ownership and a path to an eventual IPO, while the foundation retained a large equity stake and the power to appoint and remove all directors. (openai.com) Regulators in Delaware and California formally approved this restructuring, and major outlets reported that OpenAI had completed its conversion to a for‑profit PBC. (apnews.com)

Although litigation and policy debates continue, no court has invalidated the restructuring, and the new for‑profit PBC structure is in force as of late 2025. (theverge.com) That means OpenAI was in fact able to complete a legally approved transition to a conventional for‑profit corporate vehicle during 2025, so Friedberg’s prediction that it would not be able to convert from nonprofit to for‑profit in 2025 is contradicted by events.