OpenAI to remain under non-profit control in change of restructuring plans

OpenAI will remain under the control of a non-profit, the startup at the heart of the generative artificial intelligence boom said on Monday, months after it outlined plans to revamp its structure to create a public benefit corporation that would make it easier to raise capital.
OpenAI's non-profit will continue to oversee the company, CEO Sam Altman said in a letter to employees, adding that the for-profit LLC will transition to a public benefit corporation.
The company was earlier expected to shift to a for-profit governance structure, potentially helping the Microsoft-backed (MSFT.O), opens new tab company to offer equity to retain top talent and attract new investors who are looking for more financial returns.
"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. We look forward to advancing the details of this plan in continued conversation with them, Microsoft, and our newly appointed nonprofit commissioners," the startup said.