OpenAI has decided to retain nonprofit control after months of considering a for-profit structure. CEO Sam Altman confirmed the shift, citing discussions with civic leaders and attorneys general from California and Delaware. OpenAI will convert its for-profit arm into a public benefit corporation that balances shareholder interests with its mission, though the nonprofit will remain the controlling entity.
The move is intended to address increasing demand for AI tools, making it easier for OpenAI to raise capital and pursue mergers and acquisitions. This restructuring comes after legal challenges, including a lawsuit from co-founder Elon Musk, who accuses the company of betraying its founding principles. Critics, including former employees and charities, raised concerns about OpenAI’s ability to safeguard its public mission if it prioritizes profit.
OpenAI’s market value has soared to $300 billion, and it boasts 400 million weekly ChatGPT users. Altman emphasized that the company aims to retain its unique structure, balancing mission with growth, despite investor pressures for a fully for-profit approach.
Source: Swifteradio.com
