OpenAI Faces Scrutiny Over Nonprofit Status

OpenAI, the AI company behind ChatGPT, is facing scrutiny over its nonprofit structure as its valuation has soared to $157 billion. Experts are concerned that OpenAI may have surpassed the permissible limits of interaction between nonprofits and for-profits, particularly after the controversial ousting of CEO Sam Altman last November. The board is reportedly considering restructuring OpenAI, potentially transitioning to a public benefit corporation, though no decisions have been finalized. Legal experts emphasize that if OpenAI loses control of its for-profit subsidiaries, it may need to compensate for any assets originally belonging to the nonprofit. This potential shift raises questions about OpenAI's commitment to its mission of benefiting humanity and could attract attention from regulatory bodies like the IRS. Observers stress the importance of maintaining the charitable focus amidst growing commercial ambitions.