OpenAI abandons profit motive: a significant shift

ChatGPT has announced that its non-profit arm will retain control over OpenAI, while the for-profit division will be restructured into a public benefit corporation. This move addresses criticism from figures like billionaire co-founder Elon Musk, who has been engaged in a legal battle against OpenAI and its other founders, Sam Altman and Greg Brockman.

Musk argues that the company broke its promise by planning to transition from a non-profit to a for-profit entity. A California judge recently ruled that Musk can proceed with his fraud claims. OpenAI states that it adjusted its plans after discussions with societal leaders and constructive dialogues with the attorneys general of Delaware and California.

Tech editor Joe van Burik explains that OpenAI's for-profit division will become a public benefit corporation (PBC), allowing it to balance profit-making with public interest goals. This change is seen as necessary to attract further investments and remain competitive in the AI race.