From Yahoo Finance: 2025-05-05 14:16:00

OpenAI decided to remain a nonprofit, retaining control of ChatGPT and other AI products. CEO Sam Altman cites input from civic leaders and AGs of California and Delaware. A new public benefit corporation will be created as part of a recapitalization, allowing for-profit behavior. Shareholders will receive stock and profit caps lifted.

OpenAI co-founders, including Altman and Elon Musk, originally aimed to build artificial general intelligence for humanity’s benefit. Market value now at $300 billion with 400 million ChatGPT users. Plans to convert governance structure faced challenges, including a lawsuit from Musk. AGs of California and Delaware are reviewing the plan.

Advocates petitioned AGs to protect OpenAI’s mission amidst concerns about AI surpassing human capabilities. Public benefit corporations like Anthropic and xAI exist, but OpenAI’s unique structure allows nonprofit control. Altman believes they can fundraise effectively without being a “fully normal company.”

Former employees like Page Hedley led petitions to halt for-profit conversion. A coalition of California charities urges investigation into OpenAI’s new structure. Nonprofit tax attorney Rose Chan Loui emphasizes the need for nonprofit control over tech development. Investors may be frustrated with potential control measures.

OpenAI has a licensing agreement with The Associated Press, allowing access to text archives. The future of OpenAI’s governance structure remains uncertain amidst ongoing scrutiny and concerns about maintaining the original charitable mission.

Read more: OpenAI reverses course and says its nonprofit will continue to control its business