OpenAI's turnaround: the non-profit will retain control

OpenAI gave in to external pressure and changed its plans, leaving the non-profit in control of all its activities even after restructuring into a public utility company. The decision, announced the $300 billion start-up, was made after a confrontation with prosecutors in Delaware and California and following strong criticism from former employees, academics and rivals such as Elon Musk.

"With the structure we are considering, the non-profit organisation will retain control of OpenAI," said board chairman Bret Taylor, explaining that the limited liability company will be converted into a public benefit corporation. "In doing so, we will change its shareholding structure so that investors and employees can hold shares in the public benefit company," Taylor added. OpeanAI has until the end of the year to change its corporate structure and thus secure a $30 billion investment from Softbank.

OpenAI was founded ten years ago as a non-profit with the mission to build artificial intelligence that can benefit humanity. In 2019, OpenAI created a for-profit division to finance the high costs of AI development. Last December, the company announced its intention to transform itself into a public benefit company while retaining the non-profit division that would control some shares but no longer have control of the for-profit division. A plan that triggered much criticism. Dozens of employees, Nobel laureates, academics and lawyers sent a letter to the prosecutors of Delaware and California asking them to reject the initiative because of the security risks it entailed.