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OpenAI has dialed back a significant restructuring plan, with its non-profit parent retaining control in a move that is likely to limit CEO Sam Altman’s power over the pioneering maker of ChatGPT.
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 non-profit, is today a non-profit that oversees and controls the for-profit, and going forward will remain a non-profit that oversees and controls the for-profit. That will not change,” Altman said.
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 non-profits, which are solely focused on public good. Under that proposal, the non-profit parent would have been a big shareholder in the PBC but would cede control over the startup.
OpenAI said the non-profit parent would continue to control the PBC and become a big shareholder in it. The company will push ahead with plans to change the structure of its for-profit arm to allow more capital-raising to keep pace in the AI race.
The move to an outright for-profit was intended to help OpenAI raise more capital and ease restrictions tied to its non-profit parent.
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