
OpenAI abandoning its for-profit plan wasn’t enough for a group that supported the reversal, who said the new plan needs more clarity and governance safeguards, according to a letter sent this week to the California and Delaware attorneys general. The authors consist of law experts and a former OpenAI employee who previously wrote to the attorneys general opposing the nonprofit structure change.
OpenAI now plans to convert its for-profit arm into a public benefit corporation under the control of the nonprofit parent, which would be a “large shareholder” in it. The opponents argue the nonprofit wouldn’t have total control over the new arm under such a structure.
“OpenAI’s updated proposal might be a step in the right direction,” the group says, “but OpenAI must provide more detail to know whether its updated plans will address any of the concerns raised [previously]” — namely, whether the company is legally beholden to its charitable mission above everything else.
While OpenAI may have deserted its for-profit plan, leadership must now convince stakeholders it is still prioritizing the mission that was at risk of being sidelined just one month ago.
In a statement to Reuters, an OpenAI spokesperson said, “The nonprofit would continue to have control over the PBC, full stop. Any suggestion otherwise is not accurate.”