From Yahoo Finance: 2025-05-06 15:51:00

OpenAI, a nonprofit focused on safe artificial general intelligence, shifted its trajectory after realizing that scaling up AI models led to stronger results. Despite this, the company remained nonprofit until announcing a new structure where its for-profit arm will become a public benefit company. This change allows for unlimited earnings for shareholders, requiring significant investments in infrastructure and computing power.

OpenAI’s move to a public benefit company has sparked concerns about prioritizing superintelligent AI without proper safety testing. The new structure leaves the nonprofit in control of the for-profit arm, but critics doubt it will effectively oversee the company. Elon Musk, a former founder, sued OpenAI for deviating from its original mission, claiming he aims to slow down its progress, which may be true. The company plans to release new models rapidly while keeping technical details as trade secrets.

The nonprofit’s board, previously at odds with CEO Sam Altman over safety concerns, now aligns more with his goals and will receive shares in the for-profit entity. Microsoft, a major investor in OpenAI, stands to benefit from the new structure despite their evolving relationship. Investors are optimistic about OpenAI’s potential for big returns, driving the company’s shift towards a more profit-driven model.



Read more at Yahoo Finance: OpenAI’s nonprofit mission fades further into the rearview