OpenAI, initially planning to fully convert to a for-profit organization, will instead remain under the control of its nonprofit division. The for-profit arm will transition to a public benefit corporation (PBC), with the nonprofit retaining a controlling stake and significant ownership. This decision follows discussions with California and Delaware Attorneys General and addresses concerns raised by critics, including Elon Musk, who filed a lawsuit against the proposed conversion. OpenAI maintains its commitment to its mission while securing necessary funding for growth and expansion.

Prepared by Jonathan Pierce and reviewed by editorial team.