Openai Ditches plans to become a profit business

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Openai will remain under the control of the group’s non-profit arm, with Chatgpt Maker who reverses the course after Elon Musk’s intense criticism of plans to become a non-profit company.

The artificial intelligence company, which recently raised funds with $ 260 million, said that it would convert its subsidiary with a non -profit in a public benefits corporation, lifting its current lid with the returns that investors can receive, but would leave non -profit control with final control. The non -profit will also receive a great participation in the public benefits company.

The decision occurs after a reaction for Openai’s proposed restructuring to a non -profit company, including A demand of co -founders and technology entrepreneurs Musk, as well as widespread criticism of the former employees and academics who study and study.

Openai It has been pursuing a simplified corporate structure to unlock a greater investment. But critics argued that without non -profit conservation control, it would not have a general responsibility in its founding mission: to ensure humanity.

Musk, who left Openai in 2018, has tried to block his conversion. He filed a lawsuit in California, claiming that Openai and his CEO SAM Altman had violated the terms of his contract and were involved in fraud, turning the company into a profit. Musk has also made pressures for Openai to have a Public auction For non -profit assets and presented an unsolicited Offer of $ 97.4 million to take control of the group.

Altman said on Monday that the decision to maintain a non -profit control was not motivated by external pressure. “We are all obsessed with our mission. You are all obsessed with Elon.”

Openai also faced complex negotiations with Delaware’s lawyer, where the non -profit is incorporated, and California, where he has his headquarters and his investors, including Microsoft.

General lawyers have asked Openai that it will be committed to their charitable purposes as part of any conversion and that the assets that have the non -profit will be evaluated quite a bit in restructuring.

Bret Taylor, President of the Openai Board, said that the group “made the decision for non -profit to preserve Openai’s control after listening to civic leaders and participating in a constructive dialogue with the offices of Delaware Attorney General and the Attorney General of California.”

Altman said on Monday that Openai needed “much more capital than we expect” when the company was founded as a research laboratory a decade ago.

Openai launched his subsidiary in 2019, which opened the door to external investors to support the company in exchange for a part of benefits. After the launch of Chatgpt in 2022 began a race to develop new AI tools, the company has sought to raise tens of billions of dollars to keep competitive with rivals such as Google, Anthropic and Musk’s lamb.

The previous structure did not allow investors to take participation in the unit with profit, which usually requires sponsors of technology companies. The conversion of the entity with a profit into a public benefits company – which focuses on the social good in addition to the benefits – will allow investors to keep stakes in the group.

The last two rounds of financing raised by Openai – A Investment of $ 6.6 million In October and Softbank of $ 40 million At the beginning of the year, they have contained provisions related to the company that become a more traditional structure. Softbank, for example, could reduce its investment to $ 10 million if Openai does not convert this year.

A person close to the company said that Openai was confident that he could now complete the transition from his profit -based affiliate in a group of public benefits within this period. The conversion is expected to be completed after being determined with independent advisers and the general lawyers will participate in the corporation of public benefits.