OpenAI Restructuring U-Turn: For-Profit Model Abandoned Under Pressure
Tuesday, May 6, 2025, 6:20 am
After persistent external pressure and widespread criticism, OpenAI abruptly reversed its move toward a for-profit structure. The decision has left industry experts amused and somewhat perplexed as the company reaffirms its nonprofit roots while navigating the murky waters of corporate ambitions and market expectations.
Reddit: r/technews
What OpenAI’s Governance Reversal Means The Information
OpenAI confirmed it will no longer proceed with restructuring that would have transitioned the company into a for-profit entity.
OpenAI's decision to maintain nonprofit oversight impacts its deep ties with Microsoft, which is reportedly negotiating how the new structure affects its $13.75B investment. The post OpenAI’s Restructure Reversal Puts Microsoft Partnership in the Focus Again appeared first on WinBuzzer.
OpenAI 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, writes Altman.Read Entire Article
OpenAI Blinks: Scraps For-Profit Plan After Outside Pressure In a blog post overnight, the OpenAI Board revealed that its nonprofit arm would retain control of the chatbot company following backlash over its attempt to restructure into a for-profit business. "We made the decision for…
OpenAI has been trying to switch from a nonprofit business model to a for-profit corporation for a while now, drawing intense criticism along the way. … The post Why is OpenAI so hellbent on changing its structure? appeared first on BGR.
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