Summary:
OpenAI has unveiled a new governance framework to address criticism over its direction and profit model. The organization affirms that its non-profit arm will maintain control, even as it transitions into a public benefit corporation.
OpenAI Reaffirms Commitment to Non-Profit Control
In response to mounting criticism over its shifting priorities and profit-seeking moves, artificial intelligence company OpenAI has announced a revised governance structure. CEO Sam Altman stated that OpenAI will remain under the control of its non-profit parent organization, despite its evolution into a public benefit corporation—a legal structure in the U.S. that allows companies to pursue both profit and a public mission.
This update, shared on OpenAI’s official channels, comes after weeks of public debate over the organization’s future and purpose. The original structure, which placed profit caps on investors and allowed a non-profit entity to govern the for-profit arm, has faced backlash from critics including former employees and high-profile voices such as co-founder Elon Musk.
Regulatory Pressure and Public Dialogue Spark Change
Last month, a group of former OpenAI employees and AI researchers, including leading voice Geoffrey Hinton, petitioned regulators in California and Delaware to prevent the company from shifting away from its non-profit roots. Their concerns centered on transparency, control of intellectual property, and alignment with OpenAI’s original mission to benefit humanity.
Responding to this pressure, OpenAI chairman Bret Taylor emphasized that the latest decision followed extensive engagement with public officials and civic leaders. Discussions with the Attorneys General of both Delaware and California played a significant role in shaping the revised approach.
A Simplified, Investor-Friendly Structure
The new governance model introduces a “normal capital structure,” according to Altman, where all stakeholders can hold stock. While this is expected to make fundraising easier—particularly from key backers like Microsoft—it does not represent a sale of the company. Instead, it simplifies operations and removes earlier profit caps that were seen as obstacles for major investors.
Importantly, the non-profit arm of OpenAI will retain a substantial, though currently unspecified, stake in the for-profit business. This will provide the non-profit with financial resources to support its broader mission while maintaining oversight of the organization’s direction.
Balancing Mission with Market Realities
Altman defended the changes by reiterating that scaling AI responsibly requires significant investment. As a public benefit corporation, OpenAI will be legally obligated to consider societal impact alongside shareholder returns. He argued that broader access to AI can empower people, spark innovation, and improve quality of life—despite the acknowledged risks.
“We trust humanity,” Altman wrote, “and think the good will outweigh the bad by orders of magnitude.”
Ongoing Concerns from Critics
Despite the announcement, not all observers are convinced. Page Hedley, OpenAI’s former policy and ethics adviser and a leading figure behind last month’s regulatory letter, welcomed the organization’s willingness to engage but highlighted that key issues remain unresolved. These include questions about ownership of AI technology and how OpenAI will balance its dual objectives moving forward.
“We’re glad that OpenAI is listening to concerns from civil society leaders,” Hedley said, “but crucial questions remain.”
As OpenAI charts a new course, scrutiny over its governance and mission is likely to persist.
Source: BBC News
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