OpenAI Foundation Announces $40.5M in Grants for Community-Based AI Nonprofits

The OpenAI Foundation has announced its first round of grants from the People-First AI Fund, a multi-million dollar investment in community-based nonprofits working to strengthen local communities and expand the opportunity of AI. The fund will provide $40.5 million in unrestricted grants to 208 nonprofits across the United States, with a second wave of $9.5 million in Board-directed grants to be announced in the coming months.

Background and Context

In November 2025, OpenAI restructured as a public benefit corporation, generating questions about its grantmaking strategy. The nonprofit that controlled OpenAI was rebranded as the OpenAI Foundation, which received a 26% equity stake valued at $130 billion in OpenAI Group PBC. This restructuring led to the launch of the People-First AI Fund in September 2025, with the goal of supporting nonprofits working at the intersection of innovation and public good.

The fund's first recipients were announced in December 2025, with a total of $40.5 million in unrestricted grants being disbursed by the end of the year. A second wave of $9.5 million in Board-directed grants will be announced in the coming months, supporting organizations already advancing transformative AI work in areas like health that reflect the Fund's people-first values and potential for broad public benefit.

Why it Matters to the Industry

The People-First AI Fund's focus on community-based nonprofits working with AI is significant for several reasons. Firstly, many organizations in the direct services field have struggled to generate sustainable philanthropic support in recent years due to declining small donor support and funders pivoting to advocacy and organizing. The OpenAI Foundation's commitment to supporting these organizations through the People-First AI Fund could help address this challenge by leveraging AI to drive meaningful, short-term impact.

Secondly, the fund's focus on community-led engagement with AI has implications for adult-industry platforms and operators. As AI continues to play a larger role in the industry, it is essential that developers and engineers prioritize community-driven approaches to ensure that AI is used responsibly and equitably. The People-First AI Fund's emphasis on co-creating with communities and exploring how practical, community-led engagement with AI can reduce barriers to services and information could serve as a model for adult-industry platforms looking to integrate AI in a way that benefits both their users and the broader community.

What Comes Next

The OpenAI Foundation has announced its commitment to supporting nonprofits engaging with AI to advance their missions and serve their communities, with $50 million being allocated to the People-First AI Fund in 2026. Applications for the fund are now open until July 15, 2026 at 11:59 PM PT.

The focus areas for the 2026 People-First AI Fund include Community Support Services, where trusted community organizations play an essential role in facilitating access to services, opportunities, and critical support systems. Priority will be given to organizations that help people navigate complex systems and access critical resources, such as legal aid, public benefits, and disability and accessibility services.

Key Facts

• The OpenAI Foundation has announced its first round of grants from the People-First AI Fund, providing $40.5 million in unrestricted grants to 208 nonprofits across the United States.
• A second wave of $9.5 million in Board-directed grants will be announced in the coming months, supporting organizations already advancing transformative AI work in areas like health.
• The People-First AI Fund was launched in September 2025 to support nonprofits working at the intersection of innovation and public good.
• The fund's focus areas for 2026 include Community Support Services, where trusted community organizations play an essential role in facilitating access to services and opportunities.
• Applications for the People-First AI Fund are now open until July 15, 2026 at 11:59 PM PT.

Criticism of the Grant Recipients

The announcement of the first round of grants from the People-First AI Fund has been met with criticism, with some commentators suggesting that the groups chosen were not selected based on any real criteria other than spreading the money around into as many politicians' constituencies as possible. Several of the organizations listed have already worked with OpenAI partners or are based in areas where OpenAI has a significant presence.

One commentator noted that several of these organizations were already working with OpenAI partners, and the call for proposals required applicant organizations to be based in the US. This raises questions about whether the selection process was truly community-driven or simply an exercise in spreading funds around.