OpenAI faces backlash over for-profit transition, partially backtracks, while major investor Microsoft hesitates.

From Yahoo Finance: 2025-05-06 15:43:00

OpenAI faces backlash over plans to transition to a for-profit business, prompting them to partially backtrack. Microsoft, a major investor, has not yet approved the revised plan. Meanwhile, co-founder Elon Musk continues legal action, claiming a shift from the original mission. State approval and stakeholder support are still pending.

The proposed restructuring aims to balance investor interests and societal benefits. OpenAI plans to convert its for-profit arm into a public benefit corporation, allowing for more flexible financial returns. SoftBank is ready to invest $30 billion. Details on the nonprofit’s stake and governance structure are still evolving, with stakeholder input crucial for success.

Read more: OpenAI’s For-Profit Overhaul Is Far From Being a Done Deal