OpenAI has decided to stay under the control of its nonprofit arm, pulling back from its earlier plan to become a fully for-profit company. The decision comes after legal pressure, as well as discussions with government authorities. The company said that its business wing, which has been part of the nonprofit since 2019, will now move to a public benefit corporation (PBC). The nonprofit will oversee and own a large share of the PBC.
“OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit. Going forward, it will continue to be overseen and controlled by that nonprofit,” OpenAI announced in a blogpost.
OpenAI said it made the decision after speaking with civic leaders and discussing with the Attorneys General of Delaware and California. “We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission,” the company said.
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OpenAI CEO Sam Altman, in a message to staff, said OpenAI might eventually need “trillions of dollars” to make its services widely available. He also noted that the nonprofit will become a major shareholder in the PBC.
“We look forward to advancing the details of this plan in continued conversation with them, Microsoft, and our newly appointed nonprofit commissioners,” Altman wrote.
For context, OpenAI was founded in 2015 as a nonprofit and switched to a “capped-profit” model in 2019 to attract funding. The company’s plan to fully convert into a for-profit organisation drew criticism, including a lawsuit from Elon Musk. He claimed that the move went against the company’s original goal to create AI that benefits all of humanity. Musk asked the court to stop OpenAI from going ahead with the conversion. While the judge didn’t grant that request, the case is set for a jury trial in spring 2026.
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