OpenAI Reverses Course, Plans Public Benefit Corporation Structure

OpenAI has decided to abandon its plans to become a fully for-profit entity, opting instead for a compromise in which its for-profit arm will convert into a public benefit corporation (PBC) while remaining under nonprofit control. This structural shift is largely seen as a cosmetic change that allows OpenAI to continue pursuing profit while maintaining a mission-driven public image. Critics argue that the move does not significantly alter how OpenAI operates or addresses concerns about artificial intelligence safety and investor influence. The company's biggest backer, Microsoft, has not yet approved the new structure, raising questions about future governance and profit sharing. Meanwhile, OpenAI continues to expand aggressively, recently acquiring an AI-powered coding assistant in a major deal, signaling its ongoing ambition in the competitive AI landscape.