OpenAI abandons for-profit shift, keeps nonprofit control with new public benefit corporation

Serving tech enthusiasts for over 25 years.TechSpot means tech analysis and advice you can trust What just happened? OpenAI and Sam Altman have decided that becoming a for-profit entity is more trouble than it's worth. The CEO has announced that the nonprofit arm will continue to control the company as it becomes a public benefit corporation. OpenAI made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware, writes Altman. "With the structure we're contemplating, the not-for-profit will remain in control of OpenAI," Bret Taylor, OpenAI's board chairman, told reporters. "We will be converting the limited liability company, that is a subsidiary of that nonprofit, to a public benefit corporation. By doing so, it will change the equity structure of that company so that employees, investors and the not-for-profit can own equity in that PBC." Taylor added that the non- ... Read full article.