OpenAI has abandoned its plan to become a fully for-profit company, choosing instead to keep its non-profit arm in control—a move that follows mounting public and legal pressure, including a lawsuit from co-founder Elon Musk.
The maker of ChatGPT, recently valued at $260 billion, said it will convert its for-profit subsidiary into a public benefit corporation, eliminating a cap on investor returns while ensuring the non-profit retains ultimate oversight.
The reversal comes after backlash from former employees, academics, and civic leaders who warned that removing the non-profit’s control would compromise OpenAI’s founding mission: to ensure artificial intelligence benefits humanity. Musk’s lawsuit, filed earlier this year, further intensified scrutiny of the proposed restructure.
Despite the controversy, CEO Sam Altman insisted the decision was driven by internal conviction, not external pressure. “We’re all obsessed with our mission. You’re all obsessed with Elon,” Altman said on Monday.
The company has also been in talks with attorneys-general from Delaware and California—where it is incorporated and based, respectively—who pressed for guarantees that OpenAI would stay true to its charitable roots and fairly value its assets during the transition.
Board chair Bret Taylor noted the decision was made after “hearing from civic leaders and engaging in constructive dialogue” with both state officials, emphasizing the group’s renewed commitment to public interest governance.
