OpenAI maintains nonprofit control after restructuring reversal

OpenAI has reversed plans to reduce its nonprofit parent’s control over its for-profit arm, after backlash and a lawsuit from co-founder Elon Musk.

 Although the goal of the planned change to a public benefit corporation (PBC) was to increase funding, there was a chance that this would compromise the nonprofit's control, Reuters reported.

The decision may jeopardize OpenAI's original goal of creating artificial intelligence for the good of humanity, according to critics. CEO Sam Altman affirmed on Monday that the nonprofit will continue to have complete authority over the governance of the business, according to Reuters.

While OpenAI plans to restructure its for-profit operations in order to generate funds and remain competitive in the AI market, the nonprofit will continue to oversee its direction. Altman emphasized that the current governance paradigm will not change.