OpenAI Decides on Balanced Control Amid Legal and Investor Pressure

OpenAI's nonprofit parent company has decided to retain control over its for-profit arm, limiting CEO Sam Altman's influence. The decision follows criticism and legal challenges, including a lawsuit by Elon Musk. OpenAI aims to balance investor needs with its mission to develop AI for public good.

OpenAI's nonprofit parent company has opted to retain control over the organization's for-profit arm, a decision likely to limit CEO Sam Altman's authority. This move comes amid a barrage of criticism and legal challenges, notably a lawsuit from co-founder Elon Musk. Musk accuses OpenAI of straying from its mission to develop artificial intelligence for the public good.

Initially, OpenAI planned to restructure its for-profit sector into a public benefit corporation—a shift intended to balance shareholder returns with social goals. However, the nonprofit will maintain control while planning to restructure to attract more capital for its AI endeavors. The decision follows input from civic leaders and discussions with the Attorneys General of California and Delaware.

OpenAI aims to ensure that investors are satisfied while keeping operational control. The organization plans to collaborate with partners like Microsoft and regulators to finalize its updated strategic plan. Despite the move, questions linger regarding how the nonprofit will maintain its mission-driven focus amid a high-stakes competitive landscape in AI development.

(With inputs from agencies.)