OpenAI: Balancing Profit and Mission

OpenAI announced it will remain under the control of its nonprofit parent while restructuring its for-profit arm to raise more capital. This comes after criticism and a lawsuit from Elon Musk. The company plans to become a public benefit corporation, hoping to balance profit with social good.

OpenAI revealed on Monday its decision to stay under the nonprofit umbrella, as it seeks to modify its for-profit arm to attract more investment in the competitive AI sector. This follows significant criticism, including a lawsuit from Elon Musk, accusing the firm of deviating from its original mission.

The company stated that the choice for nonprofit control came after consultations with civic leaders and discussions with representatives from California and Delaware. OpenAI plans to collaborate with major investor Microsoft as well as regulators and newly appointed nonprofit commissioners to finalize the restructuring process, which was initially outlined in December.

While the adjustment aims to enable OpenAI to raise more capital, concerns have arisen regarding the equitable allocation of assets between its nonprofit and for-profit arms. The company's leadership assures that the structure will remain closely aligned with its current form, with the nonprofit continuing to oversee the public benefit corporation.

(With inputs from agencies.)