OpenAI Reverses Course, Nonprofit to Maintain Control

OpenAI, after initially announcing plans to become a for-profit organization, has decided its nonprofit arm will retain control over its for-profit entity. The nonprofit will become the controlling shareholder of a public benefit corporation (PBC), overseeing and controlling OpenAI's operations. This decision follows discussions with California and Delaware's Attorney General offices and significant pushback, including a lawsuit from Elon Musk, who argued the shift would abandon OpenAI's original nonprofit mission. While OpenAI claimed the conversion was necessary for funding, concerns remained about its impact on its charitable goals. CEO Sam Altman stated that the company may eventually require trillions of dollars to achieve its mission.