Mon, 05 May 2025

Mon, 05 May 2025 OpenAI says non-profit will remain in control after backlash

The move follows a bitter power struggle over the business.
OpenAI has announced a new governance plan following a power struggle over its business. The company's CEO Sam Altman stated that OpenAI will remain under the control of its for-profit board while transitioning into a public benefit corporation (PBC). This means the non-profit arm will continue to have significant influence and receive a large stake in the for-profit arm, allowing it to access funds for its own goals. The decision aims to simplify the company's governance structure and remove profit caps, which had hindered investment. However, critics argue that this plan does not address concerns about ownership and goal prioritization, with some still expressing reservations about OpenAI's mission and potential consequences of its growth.
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