OpenAI has decided to abandon its plans to transition from a nonprofit model to a for-profit entity, a move announced on Monday.
The developer of ChatGPT confirmed that it had formed a for-profit limited liability company (LLC), which will now be restructured into a public benefit corporation. This new setup will allow OpenAI to balance the interests of shareholders with its foundational mission. Furthermore, the nonprofit structure will maintain operational control over this public benefit corporation and will hold a significant equity stake in it.
OpenAI Chairman Bret Taylor highlighted the decision, stating, “We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California.”
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In a statement, Taylor expressed gratitude towards both attorney general offices and emphasized the importance of ongoing discussions to ensure OpenAI’s mission—devoted to ensuring artificial general intelligence (AGI) serves all of humanity—can be effectively pursued.
