US EditionFirstFT: OpenAI abandons for-profit plan
- On May 5, 2025, OpenAI revealed it has decided against converting into a fully for-profit entity and will instead maintain its original nonprofit governance structure.
- The decision followed prolonged disputes, including Elon Musk's legal challenges and investor pressure to convert OpenAI to a profit-driven public benefit corporation.
- OpenAI operates a hybrid model where a nonprofit controls a capped-profit subsidiary allowing limited private investment with a 100x return cap to balance funding needs and mission.
- CEO Sam Altman emphasized that maintaining nonprofit control aligns with OpenAI’s commitment to benefiting humanity, while legal experts view the reversal as a symbolic concession to Musk’s pressure.
- This reversal resolves months of boardroom turmoil and legal conflict, marking a pivotal moment in AI governance and raising questions about OpenAI’s future funding approach.
28 Articles
28 Articles
OpenAI gives up on commercialization: domestic and international calls for a brake on the rapid advancement of "superhuman" technology
[Silicon Valley = Watanabe Naoki] US Open AI has abandoned plans to restructure its organization to lean towards commercialism. Artificial intelligence (AI) is rapidly improving in performance, and there are risks that it could be diverted to weapons or cyber attacks, or become uncontrollable. With the emergence of an all-purpose AI that surpasses human intelligence expected, the non-profit sector has retained a system to keep a check on managem…
OpenAI gives up becoming a for-profit company, announces Sam Altman
The executive director of the artificial intelligence company who designed ChatGPT says "to have listened to civil society leaders" who were worried that the start-up would put the interests of its shareholders before ethical questioning.
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