OpenAI dials back rejig plan, nonprofit to retain control

OpenAI has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman's power over the pioneering maker of ChatGPT.

- REUTERS

The announcement follows a storm of criticism and legal challenges, including a high-profile lawsuit filed by rival and co-founder Elon Musk, who has accused OpenAI of straying from its founding mission to develop artificial intelligence for the benefit of humanity.

"OpenAI was founded as a nonprofit, is today a nonprofit that oversees and controls the for-profit, and going forward will remain a nonprofit that oversees and controls the for-profit. That will not change," Altman said in a blog post on Monday.

OpenAI had outlined plans in December to convert its for-profit arm into a public benefit corporation (PBC), a structure designed to balance shareholder returns with social goals, unlike nonprofits, which are solely focused on public good.

Under that proposal, the nonprofit parent would have been a big shareholder in the PBC but would cede control over the startup.