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OpenAI Shifts Back to Nonprofit Control
Mint Kolkata
|May 07, 2025
OpenAI is backtracking on its plans to be a more conventional for-profit company after facing mounting pressure from both former employees, rivals, and academics, including Elon Musk.
The ChatGPT maker said on Monday that its nonprofit will remain in control of the business after its for-profit division restructures as a public benefit corporation, a major shift in its plans, which would effectively maintain the contours of how OpenAI is currently set up.
"We made a decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California," OpenAI board chairman Bret Taylor said in a statement, referring to the two states tasked with reviewing the restructure.
"We thank both offices and we look forward to continuing the important conversations."
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