OpenAI Reverses Course, Says Its Nonprofit Will Remain in Control of Its Business Operations (techcrunch.com)
(Monday May 05, 2025 @05:30PM (msmash)
from the change-in-heart dept.)
- Reference: 0177334233
- News link: https://slashdot.org/story/25/05/05/1932202/openai-reverses-course-says-its-nonprofit-will-remain-in-control-of-its-business-operations
- Source link: https://techcrunch.com/2025/05/05/openai-reverses-course-says-its-nonprofit-will-remain-in-control-of-its-business-operations/
OpenAI has decided that its nonprofit division will [1]retain control over its for-profit organization , after the company initially announced that it planned to convert to a for-profit organization. From a report:
> According to the company, OpenAI's business wing, which has been under the nonprofit since 2019, will transition to a public benefit corporation (PBC). The nonprofit will control and also be a large shareholder of the PBC. "OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit," OpenAI Board Chairman Bret Taylor wrote in a statement on the company's blog. "Going forward, it will continue to be overseen and controlled by that nonprofit."
>
> OpenAI says that it made the decision "after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California." "We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission," Taylor continued.
[1] https://techcrunch.com/2025/05/05/openai-reverses-course-says-its-nonprofit-will-remain-in-control-of-its-business-operations/
> According to the company, OpenAI's business wing, which has been under the nonprofit since 2019, will transition to a public benefit corporation (PBC). The nonprofit will control and also be a large shareholder of the PBC. "OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit," OpenAI Board Chairman Bret Taylor wrote in a statement on the company's blog. "Going forward, it will continue to be overseen and controlled by that nonprofit."
>
> OpenAI says that it made the decision "after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California." "We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission," Taylor continued.
[1] https://techcrunch.com/2025/05/05/openai-reverses-course-says-its-nonprofit-will-remain-in-control-of-its-business-operations/
Helping or deterring Elon from taking control (Score:2)
by MooseTick ( 895855 )
I feel like this move is either helping or deterring Elon from taking control. Choose your own adventure.
Okay, and now the "Open" bit (Score:2)
I guess Elon has scared them into the first step towards not being complete and utter shitheads.
Re: (Score:3)
No, she's using the government to help her take control of openAI. She is incapable of knowing what an "utter shithead" even is.
Hoping more non-profits avoid self-dealing... (Score:2)
As I suggested in 2001: [1]https://pdfernhout.net/open-le... [pdfernhout.net]
"Foundations, other grantmaking agencies handling public tax-exempt dollars, and charitable donors need to consider the implications for their grantmaking or donation policies if they use a now obsolete charitable model of subsidizing proprietary publishing and proprietary research. In order to improve the effectiveness and collaborativeness of the non-profit sector overall, it is suggested these grantmaking organizations and donors move to requiring
[1] https://pdfernhout.net/open-letter-to-grantmakers-and-donors-on-copyright-policy.html
Re: (Score:2)
"Open" in the context of OpenAI just means they are "open" to people using their system.