OpenAI, the artificial intelligence research company, has dropped its plan to restructure into a for-profit entity. This decision comes after discussions with civic leaders and attorneys general from Delaware and California, who expressed concerns about the restructuring. The nonprofit parent company will continue to oversee the commercial subsidiary, now transitioning from a capped for-profit LLC to a public benefit corporation.
CEO Sam Altman stated that the earlier for-profit structure, limiting investor returns after achieving artificial general intelligence (AGI), seemed appropriate when a single dominant AGI effort was anticipated. However, the current landscape, with multiple successful AGI companies emerging, rendered the prior structure unsuitable.
This change marks a significant shift in OpenAI's governance and operational structure. The decision highlights the complexities and challenges involved in balancing the pursuit of profit with the responsible development and deployment of artificial intelligence.