OpenAI says nonprofit will remain in control of the company

OpenAI has decided to keep its nonprofit in control while restructuring into a public benefit corporation. The move follows pressure from ex-employees and civic leaders concerned about the ChatGPT maker’s attempt to become a for-profit.

A coalition of experts had warned that the change could undermine OpenAI’s charitable goals.

Chairman Bret Taylor confirmed that the nonprofit would appoint a new board and remain the governing body. CEO Sam Altman emphasized the mission to benefit humanity remains unchanged.

Backed by Microsoft and recently valued at $300 billion, OpenAI rejected a $97.4 billion bid from Elon Musk. The tech billionaire and SpaceX CEO co-founded the tech company as a nonprofit research lab in 2015.

He opposes its profit-oriented shift and sued the AI startup in 2024, claiming the company strayed from its nonprofit mission to develop AI for the benefit of humanity.

OpenAI’s for-profit LLC will become a public benefit corporation.

Despite commercial growth, OpenAI says its new structure will legally prioritize its mission over profit. Financial advisors are guiding the equity transition.