Summary
- After planning to move operations to a for-profit entity, OpenAI has decided to remain under the control of its founding nonprofit board.
- The decision comes after listening to “civic leaders” and discussions with the Attorneys General of California and Delaware.
- The original plan would have seen OpenAI established as a public benefit corporation but the new structure keeps the nonprofit firmly in control.
- The move comes after criticism and a lawsuit from Elon Musk, a co-founder of OpenAI, who accused the company of breaching an implied contract.
- Musk’s lawsuit claims that OpenAI retained the benefits of his early investment in the firm.
- The case is still ongoing but a recent ruling agreed that Musk’s complaint was sufficient.
By Benj Edwards
Original Article