US EditionOpenAI to remain under non-profit control in change of restructuring plans
- On May 5, 2025, OpenAI announced that its for-profit entity will be restructured as a public benefit corporation overseen by its nonprofit parent organization, with headquarters in California and incorporation in Delaware.
- This decision followed months of planned restructuring, legal challenges from co-founder Elon Musk, and investor pressure demanding a traditional for-profit structure to support massive funding needs.
- OpenAI's nonprofit will remain the majority stakeholder and select the PBC board, ensuring the company balances shareholder interests with its public mission to safely develop artificial general intelligence.
- CEO Sam Altman explained that the planned organizational structure ensures the nonprofit entity will continue to oversee OpenAI, enabling improved fundraising capabilities while preserving its commitment to the original mission.
- The reversal of earlier plans implies ongoing oversight from California and Delaware attorney generals and responds to concerns about preserving OpenAI's charitable purpose amid escalating valuations and competition.
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304 Articles
Microsoft Holds Out on OpenAI Nonprofit Plan
Unless you are ChatGPT itself — the training data of the OpenAI chatbot’s latest model only runs to October 2023 — you’ve heard the explosive news. OpenAI said it is rowing back on plans to spin off a more traditional for-profit company on Monday, after facing backlash from former staff and experts who called the move a betrayal of its nonprofit mandate. One thing that remains unclear is how a seemingly frayed relationship with key backer Micros…
Utopia can be exchanged for ordinary capitalism | Björn Jeffery
ANALYSIS. Open AI is being forced to back down from its plan to transform into a commercial company. But more interesting is a sentence in which the company's view of the future of AI seems to have taken a completely new direction.
OpenAI’s nonprofit mission fades further into the rearview
OpenAI was founded as a nonprofit with a mission to build safe artificial general intelligence for the benefit of humanity. For a while, that structure made sense. But in 2019, the company made a discovery that changed everything: Scaling up AI models—with more data, compute, and parameters—led to predictably stronger results. The insight was formalized in a 2020 paper titled “Scaling Laws for Neural Language Models,” and it reshaped OpenAI’s tr…
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