---
title: "OpenAI will remain under nonprofit control, pushes ahead with for-profit conversion"
description: "May 5 (Reuters) - OpenAI said on Monday it would remain under the control of its nonprofit parent, while pushing ahead with plans to change the structure of its for-profit arm to allow more capital-raising to keep pace in the artificial-intelligence race."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-05-05-openai-will-remain-under-nonprofit-control-pushes-ahead-with-for-profit-conversion/"
published: "2025-05-05T21:26:25"
updated: "2025-05-05T21:26:26"
lang: "en-ZA"
word_count: 369
---

# OpenAI will remain under nonprofit control, pushes ahead with for-profit conversion

> May 5 (Reuters) - OpenAI said on Monday it would remain under the control of its nonprofit parent, while pushing ahead with plans to change the structure of its for-profit arm to allow more capital-raising to keep pace in the artificial-intelligence race.

By Reuters · Published 5 May 2025, 23:26 SAST · Updated 5 May 2025, 23:26 SAST

## Key points
- In a plot twist worthy of a Silicon Valley soap opera, OpenAI has decided to keep its nonprofit parent firmly in the driver’s seat, despite a tumultuous quest for capital and the specter of Elon Musk lurking in the background, all while trying to balance the fine line between profit and purpose in the AI arms race.
- OpenAI's for-profit arm is undergoing restructuring to enhance capital-raising efforts amid ongoing scrutiny.
- The nonprofit parent will maintain control over OpenAI, addressing concerns from civic leaders and legal challenges.
- The shift to a public benefit corporation aims to balance profit-making with social responsibility in AI development.
- Controversy surrounding leadership changes highlighted the tension between OpenAI's mission and its financial ambitions.

## Content

- For-profit arm still restructuring for more capital-raising
- OpenAI to remain under nonprofit parent's control
- For-profit push had raised concerns about asset allocation for nonprofit arm

The announcement follows a storm of criticism and legal challenges, including a high-profile lawsuit filed by rival [Elon Musk](https://www.reuters.com/business/elon-musk/), who has accused the company of straying from its founding mission to develop AI for the benefit of humanity.

"We 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," the startup said in a blog post. "We look forward to advancing the details of this plan in continued conversation with them, Microsoft, and our newly appointed nonprofit commissioners."

The company had outlined plans in December to revamp its structure to become a public benefit corporation, saying that would help it to "raise more capital than we'd imagined," and remove the restrictions imposed on the startup by its current nonprofit parent. On Monday, OpenAI said the nonprofit parent will control the public benefit corporation and become a big shareholder in it.

The move had raised concerns about whether OpenAI would allocate its assets to the nonprofit arm fairly, and how the company would strike a balance between making a profit and generating social and public good as it develops AI.

The startup has been looking to make changes to attract further investment, as the expensive pursuit of artificial general intelligence, or AI that surpasses human intelligence, heats up.

It said in March it would raise up to $40 billion in a new funding round led by SoftBank Group 9984.T, at a $300 billion valuation. The round was contingent on the AI firm transitioning to for-profit by the end of the year.

OpenAI's structure drew attention in November 2023 during one of the biggest boardroom dramas in Silicon Valley, where members of the nonprofit board [ousted OpenAI co-founder and CEO Sam Altman](https://www.reutersconnect.com/all?search=all%3AL4N3CI3K8&linkedFromStory=true) over a breakdown in communication and loss of trust. [He was reinstated](https://www.reutersconnect.com/all?search=all%3AL4N3CN16E&linkedFromStory=true) after five days, following an outpouring of support from employees and investors.

(Reporting by Arsheeya Bajwa in Bengaluru and Krystal Hu in New York; Editing by Alan Barona and Matthew Lewis)