OpenAI сonfirms it will remain a nonprofit after reconsidering status change

OpenAI has decided to retain its nonprofit status, abandoning plans for restructuring after consultations with the public and legal authorities.

Sam Altman announced the decision followed discussions with public leaders and the attorneys general of California and Delaware. The company plans to continue engaging with Microsoft and newly appointed independent commissioners.

This move reverses a previous plan to convert OpenAI into a public benefit corporation (PBC) where the nonprofit would hold only limited influence. Now, the nonprofit retains full control, surprising investors and reshaping the company’s future direction.

Critics, including Elon Musk, had raised concerns about weakening oversight of AI development. Musk filed a lawsuit accusing OpenAI of breaching an implied contract and unjust enrichment. The court partially sided with him, though some claims were dismissed.

The company also faced pressure from lawyers, scientists, and former employees, alarmed by potential risks associated with superintelligent AI.

While the nonprofit remains in control, OpenAI announced it will convert its commercial arm into a PBC with a simpler equity structure but the same mission.

This change may affect funding. Notably, SoftBank may reduce its planned $30 billion investment to $20 billion if OpenAI does not fully commercialize by the end of 2025.