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Investing.com -- OpenAI, the startup central to the generative artificial intelligence boom, announced on Monday that it will remain under the control of a non-profit. This comes after the company previously planned to restructure into a public benefit corporation, a move intended to facilitate capital raising.
CEO Sam Altman confirmed in a letter to employees that the non-profit entity will continue to oversee the company. He added that the for-profit LLC is transitioning to a public benefit corporation.
Previously, OpenAI was anticipated to shift to a for-profit governance structure. This change was seen as a potential advantage for the Microsoft-supported company, as it would have allowed it to offer equity to retain high-performing employees and attract new investors seeking increased financial returns.
The decision to keep the non-profit in control was made after consultations with civic leaders and discussions with the offices of the Attorneys General of California and Delaware. The startup expressed its anticipation to further the details of this plan in ongoing dialogue with them, Microsoft (NASDAQ:MSFT), and the newly appointed non-profit commissioners.
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