OpenAI has officially decided to abandon its contentious plan to transition into a for-profit entity, opting instead to reinforce its original nonprofit framework. The announcement was made public on Monday through an email from CEO Sam Altman to staff, which was also shared on the company’s website, marking a pivotal shift in the organization’s trajectory.
The decision follows months of internal deliberation, external criticism, and heightened scrutiny from investors, AI safety advocates, and civic leaders. OpenAI had introduced a “capped-profit” model in 2019 to balance mission-driven oversight with the need to raise capital. However, a proposal last year to transition into a public benefit corporation (PBC) ignited backlash from critics, including co-founder Elon Musk, who feared the move might compromise the company’s dedication to AI safety.
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Altman clarified that after extensive consultations with civic leaders and the Attorneys General of California and Delaware, the company resolved to keep the nonprofit entity in control. Under the new strategy, OpenAI will continue overseeing its profit-generating division while seeking more flexible avenues for growth and fundraising.
The reaffirmation of OpenAI’s nonprofit status comes as the company stands at the forefront of artificial intelligence innovation, especially following the global success of ChatGPT. Altman underscored that this structure will help OpenAI pursue rapid but safe AI advancements, ensuring the technology remains accessible to the wider public.
