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OpenAI will remain under the control of the groupโs non-profit arm, with the ChatGPT maker reversing course after intense criticism from Elon Musk over plans to convert into a for-profit company.
The company, which recently raised funds at a $260bn valuation, said it would convert its existing for-profit subsidiary into a public benefit corporation, lifting its current cap on returns that investors can receive, but would leave the non-profit with ultimate control.
The decision comes after a backlash to OpenAIโs proposed corporate restructuring to a for-profit company, including a lawsuit from former co-founder and tech entrepreneur Musk, as well as widespread criticism from former employees and the academic AI community.
Critics argued that without the non-profit retaining control, as it currently has and will continue to under new plans, the company would not have a sole fiduciary responsibility to its founding mission: to ensure AI benefits humanity.
Sam Altman, the groupโs chief executive, said on Monday that the decision was not motivated by outside pressure. โWeโre all obsessed with our mission. Youโre all obsessed with Elon.โ
OpenAI also faced complex negotiations with the attorneys-general of Delaware, where the non-profit is incorporated, and California, where it is headquartered, and with its investors, including Microsoft.
The attorneys-general have sought assurances from OpenAI that it will remain committed to its charitable purposes as part of any conversion, and that the assets held by the non-profit will be fairly valued in the restructure.
Bret Taylor, chair of OpenAIโs board, said the group โmade the decision for the non-profit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the attorney-general of Delaware and the attorney-general of Californiaโ.
