OpenAI Drops Plan to Restructure as For-Profit Company

OpenAI has abandoned its controversial plan to become a for-profit company amid criticism and legal pressure. CEO Sam Altman confirmed that OpenAI will remain under the control of its founding nonprofit board, following discussions with civic leaders and state attorneys general. Initially formed as a nonprofit, OpenAI had considered restructuring into a public benefit corporation, sparking concern over its commitment to its original mission. Altman’s potential equity stake and investor interests, including SoftBank’s $40B funding with a $20B conditional clause, added to tensions. The nonprofit will now retain control and hold major shares in the public benefit arm, preserving governance oversight.