OpenAI, the creator of ChatGPT, has decided to abandon its controversial proposal to transition into a for-profit entity, choosing instead to stick with its original nonprofit mission. The decision follows months of internal debate, public criticism, and pressure from investors and AI safety advocates.
CEO Sam Altman announced the move in an email to staff on Monday, stating the decision was influenced by discussions with civic leaders and legal consultations in California and Delaware, where OpenAI is registered. The company had introduced a “capped-profit” model in 2019 to attract funding while maintaining oversight but faced backlash when it proposed shifting to a public benefit corporation last year.
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Concerns from figures like co-founder Elon Musk and legal hurdles further complicated the process, prompting OpenAI to reconsider. Under the updated approach, OpenAI will retain nonprofit control while continuing to manage its profit-generating division for growth and innovation.
Altman emphasized that the decision ensures OpenAI can keep advancing AI safely and making technologies like ChatGPT widely accessible.
