OpenAI reverses course, says its nonprofit will remain in control of its business operations

techcrunch.comPublished: 5/5/2025

Summary

OpenAI has decided to retain its nonprofit division as the controlling entity for its for-profit operations, moving from a Public Benefit Corporation (PBC) structure back to a nonprofit governance model after consulting with civic leaders and attorneys. Elon Musk has sued OpenAI, arguing that the company abandoned its original nonprofit mission aimed at benefiting humanity. The case is set to proceed to a jury trial in spring 2026. While some stakeholders, including organizations and civil society groups, support this effort, others, like labor groups, oppose it. OpenAI's CEO emphasizes the need for significant investment to fulfill its mission of global AI accessibility.