OpenAI reverses course, says its nonprofit will remain in control of its business operations | TechCrunch

OpenAI has decided that its nonprofit division will retain control over its for-profit org, after the company initially announced that it planned to convert to a for-profit organization.

According to the company, OpenAI’s business wing, which has been under the nonprofit since 2019, will transaction to a public benefit corporation (PBC). The nonprofit will control and also be a large shareholder of the PBC.

“OpenAI was founded as a non-profit, and is today overseen and controlled by that nonprofit,” wrote the company in a blog post. “Going forward, it will continue to be overseen and controlled by that nonprofit.”

OpenAI says that it made the decision “after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California.”

This story is developing. Check back for updates.