OpenAI announced Monday that it will retain its nonprofit governance structure while proceeding with a major restructuring of its for-profit subsidiary to enable greater capital-raising capacity amid intensifying competition in the artificial intelligence sector.
The decision follows months of internal debate, public scrutiny, and legal challenges—including a prominent lawsuit from Elon Musk, who accused OpenAI of deviating from its original mission to develop AI for the benefit of humanity.
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” the company said in a blog post. OpenAI added that it would work closely with stakeholders including Microsoft, its largest investor, and newly appointed nonprofit commissioners to refine the structure.
For-Profit Reorganization Amid Funding Push
In December, OpenAI revealed plans to convert its for-profit operations into a public benefit corporation, a model designed to attract larger funding rounds without compromising a commitment to social impact. On Monday, OpenAI clarified that its nonprofit parent will retain control of the for-profit entity and become a significant shareholder in the restructured arm.
This hybrid structure aims to balance commercial viability with the company’s stated mission of ensuring AI serves public interest, a challenge that has drawn increasing scrutiny as OpenAI's valuation and influence have soared.
In March, OpenAI announced it was seeking to raise up to $40 billion in a new funding round led by Japan’s SoftBank Group, contingent on completing its for-profit transition by the end of 2025. That round would value the company at an estimated $300 billion, reflecting investor optimism in its pursuit of artificial general intelligence (AGI)—AI systems that surpass human-level intelligence.
Governance Under the Spotlight
OpenAI’s complex corporate structure, blending nonprofit oversight with commercial activity, came under intense scrutiny in November 2023, when the company’s board briefly removed CEO Sam Altman amid concerns over leadership and transparency. Altman was reinstated within five days after strong support from employees and backers.
The restructuring plan seeks to avoid future conflicts by reinforcing nonprofit oversight, while allowing the for-profit subsidiary to access the capital needed for AI model development, infrastructure, and global expansion.
Regulatory and Ethical Concerns
The company acknowledged concerns around asset allocation between its nonprofit and for-profit arms and said it would ensure transparency and fairness in managing resources. Critics have argued that OpenAI’s increasing commercial focus could undermine its founding commitment to developing safe and universally beneficial AI.
As the global AI race accelerates—with rivals such as Google DeepMind, Anthropic, xAI, and Meta making parallel strides—OpenAI’s structural realignment is viewed as critical for keeping pace while navigating the ethical and regulatory responsibilities unique to the field.
OpenAI said further details of the restructuring will be released following continued consultations with regulators and key partners.
The global economy, already fragile, now faces a new shock—this time from the United States. President Donald Trump’s latest tariff wave has dragged average U.S. duties to levels unseen in over a century. The trade war with China is escalating fast.
Sam Altman has stepped down as chair of nuclear start-up Oklo, citing a potential conflict of interest ahead of talks with OpenAI over a future energy supply deal. The move comes as the pressure mounts to power artificial intelligence with stable, low-carbon energy sources.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
A jury trial in the lawsuit filed by billionaire Elon Musk against OpenAI will begin in spring 2026, as determined by U.S. District Judge Yvonne Gonzalez Rogers on Friday.
OpenAI has unveiled significant updates to its Advanced Voice Mode feature for ChatGPT, making its AI voice assistant more personable and responsive to user needs.
Indonesia has raised the alert level to the highest for Mount Lewotobi Laki Laki after it erupted eight times over the weekend, the country’s volcanology agency said.
As South Western Railway becomes the latest operator to be renationalised under Great British Railways (GBR), questions remain about whether these changes will lead to better services or lower fares.
In Malaysia, rivers are under threat from invasive fish species that have spread widely, harming native wildlife and local ecosystems.
China has openly supported Denmark’s sovereignty over Greenland following renewed interest from US President Donald Trump in acquiring the autonomous Danish territory.
The US State Department has announced visa bans on owners, executives, and senior officials of India-based travel agencies accused of helping people enter the United States illegally.
Ukrainian President Volodymyr Zelenskyy met Turkish President Recep Tayyip Erdogan in Ankara on May 15, with discussions reportedly focusing on upcoming peace talks between Ukrainian and Russian delegates in Istanbul.
Israeli Prime Minister Benjamin Netanyahu said the war in Gaza will not stop until Hamas is destroyed, following the release of US-Israeli soldier Edan Alexander.
Qatar signed a landmark agreement with U.S. aerospace giant Boeing on Wednesday to acquire 160 aircraft for Qatar Airways, a deal valued at $200 billion. The signing took place in Doha during the visit of U.S. President Donald Trump.
Ukrainian and Russian delegations meet behind closed doors at Istanbul’s Dolmabahçe Palace at 10:00 local time today to explore security guarantees, territorial integrity and a possible ceasefire.
EU approves 17th Russia sanctions, blacklisting almost 200 shadow‑fleet ships, 30 evasion firms and 75 defence figures, banning missile chemicals and arming Brussels to strike Kremlin hybrid and operations.
Microsoft announced on Monday that it will begin hosting AI models from Elon Musk's xAI, Meta Platforms, and European startups like Mistral and Black Forest Labs in its own data centers.
Xiaomi CEO Lei Jun announced a $6.9 billion investment plan over the next decade to develop advanced chips, unveiling the new Xring O1 system-on-chip this Thursday, aiming to boost the company’s high-end smartphone strategy and reduce reliance on Qualcomm.
NASA’s Perseverance rover has spotted the first aurora on Mars visible to the human eye, offering a glimpse of what future astronauts might one day enjoy under the Martian sky.
China and Russia have agreed to build a nuclear-powered lunar base by 2036 at the Moon’s south pole. The International Lunar Research Station will support scientific research and resource exploration, marking a major step in their joint space efforts amid shifting global space priorities.
ChatGPT climbed to fifth place among the world’s most visited websites in April, outpacing rivals in the AI space despite increasing competition, including from China’s DeepSeek.
Indonesia has raised the alert level to the highest for Mount Lewotobi Laki Laki after it erupted eight times over the weekend, the country’s volcanology agency said.
As South Western Railway becomes the latest operator to be renationalised under Great British Railways (GBR), questions remain about whether these changes will lead to better services or lower fares.
In Malaysia, rivers are under threat from invasive fish species that have spread widely, harming native wildlife and local ecosystems.
China has openly supported Denmark’s sovereignty over Greenland following renewed interest from US President Donald Trump in acquiring the autonomous Danish territory.
The US State Department has announced visa bans on owners, executives, and senior officials of India-based travel agencies accused of helping people enter the United States illegally.
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