US EditionOpenAI to remain under non-profit control in change of restructuring plans
- On Monday, OpenAI announced it will remain under control of its nonprofit parent while converting its for-profit arm to a public benefit corporation.
- This decision follows months of pressure from advocates and scrutiny by Delaware and California attorneys general concerned about protecting OpenAI's charitable mission.
- OpenAI’s new structure aims to balance shareholder interests with its public mission, enabling more capital-raising to meet high AI demand and support mergers.
- CEO Sam Altman explained that after consulting with community leaders and engaging with the Attorneys General from California and Delaware, the nonprofit was chosen to retain governance authority, underscoring OpenAI’s distinctive management structure.
- The outcome preserves nonprofit oversight but could limit funding speed, representing a compromise that investors accept while OpenAI pursues safe artificial intelligence development.
140 Articles
140 Articles
OpenAI reverses course, says its nonprofit will remain in control
UNITED STATES – After months of pursuing a plan to convert itself into a for-profit business, OpenAI is reversing course and said Monday its nonprofit would 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
OpenAI ditches plan to become a for-profit company
OpenAI will reverse course on its plans to convert into a for-profit business, announcing on Monday its nonprofit will continue to have control of the artificial intelligence firm. In a Monday letter to employees, CEO and co-founder Sam Altman said the company decided for the nonprofit to stay in control after hearing from civic leaders…
OpenAI Backs Down on Restructuring Amid Pushback - Overpasses For America
The newly proposed structure keeps the nonprofit in control, though Monday’s blog post didn’t go into detail about what exactly that will look like. The company specified that its current for-profit subsidiary will become a public benefit corporation (PBC), which is how its competitors Anthropic and xAI are set up. PBCs are legally allowed to prioritize both shareholder and societal interests. “The nonprofit will control and also be a large shar…
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