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OpenAI Backs Down on Restructuring Amid Pushback

Paresh Dave, Kylie Robison

created: May 5, 2025, 9:26 p.m. | updated: May 8, 2025, 10:02 p.m.

OpenAI on Monday announced a proposed restructuring that would give its nonprofit arm ongoing control of ChatGPT and the rest of the startup’s AI products. The proposed company structure has to be approved by the attorney general offices in California and Delaware by early next year. That money is crucial for OpenAI to maintain its position as a leader in generative AI and give higher returns to investors. In 2024, Musk sued OpenAI for breach of contract, arguing that it had abandoned its original mission in pursuit of profit. The newly proposed structure keeps the nonprofit in control, though Monday’s blog post didn’t go into detail about what exactly that will look like.

7 months, 1 week ago: WIRED