OpenAI to stay nonprofit, scrap proposed overhaul
The change won’t comprise the ChatGPT-maker’s ability to raise funds for development, CEO Sam Altman said.
ChatGPT-maker OpenAI has abandoned plans to become a for-profit company and reaffirmed commitment to its nonprofit status.
In a May 5 blog post, OpenAI confirmed plans to convert its for-profit business unit into a so-called Public Benefit Corporation (PBC), which would remain under the nonprofit’s control. PBCs are for-profit companies that are legally obligated to prioritize a social mission alongside the interests of shareholders.
The plans mark a reversal for OpenAI, which had previously floated a for-profit conversion involving spinning out the nonprofit entity.
