OpenAI dials back conversion plan, nonprofit to retain control • FRANCE 24 English

OpenAI dials back conversion plan, nonprofit to retain control • FRANCE 24 English

After continued pressure from civic leaders and former employees, Open AAI announced Monday that it would dial back restructuring plans. The maker of the popular generative tool Chat GPT had outlined intentions in December to convert its for-profit arm into a public benefit corporation, a structure designed to balance social goals with the pursuit of shareholder returns. Under that proposal, OpenAI’s nonprofit parent would have seated control over the startup, thereby sparking concerns over how OpenAI would balance profitm with its mission to develop AI for the public good. CEO Sam Alman tried to allay these fears at a summit in Paris this February. The nonprofit will continue as a very, very strong thing. The mission is really important and we’re just, you know, we’re totally focused on making sure we preserve that. The decision to keep Open AAI under nonprofit control is likely to limit Altman’s power over the startup when it is seeking to raise more capital. To that end, Altman said the company will still proceed with a plan to remove caps on the profit that investors can earn. Still, many questions remain over what exactly will change at OpenAI as the newly revealed plan lacks detail. Because of this, a lawyer for Elon Musk said the billionaire has no plans to drop his lawsuit to block structural changes at Open AI. Musk co-founded OpenAI and fought with Altman for control before leaving in 2018. He now competes in the generative AI market with another startup, XAI. The suit has a jury trial scheduled for March 2026.

OpenAI has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman’s power over the pioneering maker of ChatGPT. The announcement follows a storm of criticism and legal challenges, including a high-profile lawsuit filed by rival and co-founder Elon Musk, who has accused OpenAI of straying from its founding mission to develop artificial intelligence for the benefit of humanity. Story by Matthew-Mary Caruchet.
#OpenAI #profit #tech

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