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News in English (USA) / 06.05.2025 / 07:00

OpenAI Decides to Retain Nonprofit Control Amid Backlash and Restructuring Plans

OpenAI has made a significant reversal regarding its organizational structure, announcing that it will maintain control under its nonprofit arm following mounting pressure from stakeholders. This decision comes after intense criticism of its earlier proposal to convert to a for-profit model, which sparked backlash from industry figures and the public alike. The restructuring plans are being closely scrutinized, with Microsoft identified as a key player in the ongoing deliberations. Notably, Elon Musk, a co-founder of OpenAI, perceives this reversal as a win in his ongoing legal battles against the organization. Despite the change in direction, experts debate whether this decision adequately addresses the challenges of meeting rising demand for artificial intelligence technologies.
The New York Times, OpenAI, Bloomberg.com, CNBC, The Washington Post, BBC, MarketWatch, Yahoo Finance, WSJ, Axios