OpenAI Reverses Plan, Keeps Nonprofit Board Control

OpenAI has reversed its initial plan to transfer control to a for-profit entity, opting instead to maintain nonprofit board oversight as its for-profit subsidiary transitions to a public benefit corporation (PBC). The decision comes in response to criticism from civic leaders, former employees, and co-founder Elon Musk, who remains engaged in a lawsuit against the company. CEO Sam Altman and board chairman Bret Taylor reaffirmed that the nonprofit will continue to oversee OpenAI’s mission to ensure AGI benefits humanity. The PBC structure will allow equity issuance to employees and investors while preserving nonprofit oversight. However, this change has raised concerns about OpenAI's ability to attract future funding, as the original restructuring was designed to facilitate new investments. Leadership emphasized ongoing transparency and engagement with regulators and stakeholders.