What's Happening?
In November 2025, OpenAI restructured as a public benefit corporation, with the OpenAI Foundation receiving a 26% equity stake in the company. This restructuring led to the creation of the People-First
AI Fund, aimed at supporting nonprofits working at the intersection of innovation and public good. By the end of 2025, the foundation plans to disburse $40.5 million in unrestricted grants to 208 U.S.-based nonprofits, with an additional $9.5 million in board-directed grants to follow. The fund targets organizations in fields such as mental health, education, and food security, many of which are in the early stages of AI adoption.
Why It's Important?
The People-First AI Fund represents a significant investment in leveraging AI for societal benefit, particularly in sectors that have struggled with sustainable funding. By supporting nonprofits that are community-driven, the fund aims to democratize AI's benefits and address systemic issues. This initiative could serve as a model for how AI can be used to enhance service delivery in critical areas, potentially leading to more efficient operations and better outcomes for communities. The fund's focus on immediate needs and AI literacy underscores the importance of equipping organizations to navigate the evolving technological landscape.
What's Next?
The OpenAI Foundation plans to continue its grantmaking efforts, with a focus on health and AI resilience. As the foundation disburses its funds, it will be crucial to monitor how grantees utilize AI to improve service delivery and address community needs. The foundation's ability to scale its grantmaking and share insights with the broader field will be key to maximizing the impact of the People-First AI Fund. Additionally, the potential challenges posed by proposed federal budget cuts could further strain direct service providers, making the support from the fund even more critical.
Beyond the Headlines
The People-First AI Fund highlights the ethical considerations of AI deployment, emphasizing the need for equitable access and benefits. By involving community-driven organizations, the fund seeks to ensure that AI development aligns with societal values and addresses the needs of diverse populations. This approach could influence other philanthropic efforts and encourage a broader dialogue on the responsible use of AI in addressing social challenges.
