Europe EditionOpenAI to remain under non-profit control in change of restructuring plans
- OpenAI announced on May 5, 2025, that it will keep nonprofit control over its operations and not fully convert to for-profit status.
- This reversal follows months of pressure from civic leaders, legal petitions by former employees, and discussions with Attorneys General in California and Delaware.
- OpenAI will restructure its for-profit arm into a public benefit corporation controlled by the nonprofit board to balance profit goals with its mission to safely develop AI.
- CEO Sam Altman stated the plan is a compromise allowing investors to fund growth while maintaining nonprofit governance, noting the nonprofit will “choose the board members” of the new entity.
- The decision implies OpenAI will remain unique among AI firms by prioritizing a public mission but may face limits raising capital due to nonprofit control in a competitive AI landscape.
194 Articles
194 Articles
OpenAI Continues To Be Overseen, Controlled By Nonprofit: Sam Altman
Sam Altman-run OpenAI will continue to be overseen and controlled by the nonprofit and its 'for profit LLC' will transition to a public benefit corporation, giving the nonprofit better resources to support several benefits, the company has announced
OpenAI Reverses Course As Sam Altman Says Nonprofit Will Remain In Control Amid Elon Musk's Lawsuit And Investor Pushback - Microsoft (NASDAQ:MSFT), SoftBank Group (OTC:SFTBF)
On Monday, ChatGPT-parent OpenAI said that it will retain its nonprofit parent's control over its for-profit operations, scaling back a plan to transition fully to a public benefit corporation amid mounting legal pressure and investor concerns. What Happened: In a letter to OpenAI's employees that was shared in a blog post, Altman said that public benefit corporations have become the go-to for-profit model for AGI labs such as Anthropic and xAI,…
OpenAI announces plan to remain a nonprofit company
OpenAI, the pioneering artificial intelligence company behind ChatGPT, announced on Monday that it will continue operating as a nonprofit, dialing back a controversial restructuring plan to convert it into a for-profit organisation.
OpenAI Reverses Course And Says Its Nonprofit Will Continue To Control Its Business
After months spent pursuing a plan to convert itself into a for-profit business, OpenAI is reversing course and said Monday its nonprofit will continue to control the company that makes ChatGPT and other artificial intelligence products. “We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” said CEO Sam Altman in a …
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