OpenAI's CEO Sam Altman announced the company will not proceed with its controversial plan to transition to a for-profit model. This decision follows pushback from stakeholders, including former employees and state officials. Instead, the company will restructure as a public benefit corporation under nonprofit oversight, ensuring that both shareholder interests and its mission are considered. Delaware's Attorney General expressed satisfaction with the new approach, which retains nonprofit control while allowing for-profit elements, thus addressing prior concerns.
OpenAI is shifting from a for-profit model following strong opposition from stakeholders, highlighting the importance of balancing profit with nonprofit missions.
The nonprofit board will oversee a for-profit LLC while ensuring that both shareholders and the mission are considered in its operations.
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