OpenAI Retains Nonprofit Control Amid Governance Overhaul

OpenAI has reversed its previous plans to shift greater control of its operations to investors, reaffirming that its nonprofit board will retain oversight of the company and its for-profit business, including ChatGPT. This decision follows months of intense internal debate, investor pressure, and discussions with the attorneys general of California and Delaware, who oversee nonprofit entities. Instead of becoming a fully for-profit company, OpenAI’s commercial arm will transition to a Public Benefit Corporation, a legal structure that balances profit motives with the company's mission to advance artificial general intelligence for the benefit of humanity. The nonprofit will remain OpenAI’s largest shareholder and governing authority, upholding the original vision established by co-founders such as Sam Altman and Elon Musk, despite Musk’s later criticisms and legal disputes. The move is widely seen as a victory for those concerned that OpenAI was drifting from its founding purpose amid rapid growth and commercial success. Critics, including Musk, had warned that ceding control to investors risked compromising OpenAI’s commitment to AI safety and societal benefit.