Athira Sethu
Kochi, 6 May 2025
OpenAI, the firm behind ChatGPT, has switched plans. Initially, the firm was set to allow its for-profit arm to dominate. Now, however, OpenAI indicates that its nonprofit division will remain in control. CEO Sam Altman explained that the move came following discussions with government officials and lawyers in California and Delaware.
OpenAI is experimenting with a new growth plan. It wishes to grow and profit but continues to prioritize benefiting the world. To accomplish this, the company will shift from being an LLC to a public benefit corporation. This form of company is permitted to generate a profit, but it has to also work for society’s benefit.
Altman indicated that this switch will enable OpenAI to receive more funding from investors. It will also enable the company to do things such as acquire other companies and expand faster. However, despite the fact that the company will function more like a typical business, the nonprofit division of OpenAI will remain in control. The nonprofit board will select the officers of the new corporation.
Some modifications will also be done for investors. Some profit limits will be eliminated, and shareholders will receive company stock. This will attract OpenAI more to individuals who wish to invest money.
OpenAI was initiated as a non-profit research organization by Sam Altman, Elon Musk, and others. The mission was to develop artificial intelligence (AI) that benefits all. Now, OpenAI is valued at about $300 billion and ChatGPT has approximately 400 million users weekly.
Recently, OpenAI has faced some problems. Elon Musk filed a lawsuit, saying the company moved away from its original mission. Some of his claims were dropped, but the case is not over. Also, government offices in California and Delaware are still reviewing OpenAI’s new plan.
Some are concerned. They maintain that if OpenAI develops super-powerful AI, it must be extremely responsible and cautious. They worry that OpenAI may lose sight of safety if it gets too caught up in the desire to make money.
Nonetheless, according to OpenAI, the non-profit board will remain in command. This contrasts it with other AI firms such as Anthropic and xAI. OpenAI aims that its model will support growth while retaining faithfulness in improving the world.
