Long after combating opposition from its former co-founder, Elon Musk, OpenAI cancelled its plan to shift into a fully for-profit company, selecting instead to keep its nonprofit governance intact.
The artificial intelligence (AI) giant's announcement comes amid rising pressure from regulators and ethics advocates, with Musk, warning that becoming a for-profit company could impede the development of AI.
OpenAI CEO terminates plans of the for-profit transition
OpenAI CEO Sam Altman confirmed the termination of the for-profit transition in a message to staff on Monday, April 6, 2025, which was published on the company’s site later.
“We decided for the nonprofit to stay in control,” he said, after discussions with officials in California and Delaware, adding that the nonprofit board will permit the firm to pursue “rapid, safe progress” in the evolving field of AI.
ChatGPT manufacturer’s 2024 proposal to become a public benefit organisation aimed to offer more financial frameworks but led to an intense controversy when the tech billionaire decided to sue the company, noting that the transition would betray its original cause.
“We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone," Altman said.
Despite the previously mentioned setbacks and some other intensifying conflicts, OpenAI has remained a major player in the AI landscape.
