Yesterday OpenAI, the highly influential artificial intelligence research organization, announced its decision to remain governed by its nonprofit controlling foundation. This is a big turnaround from its previous direction to fully convert to a for-profit company. The decision comes after sustained public advocacy and a number of lawsuits. Interestingly enough, one of the co-founders — Elon Musk — sued, arguing that the move would undermine the organization’s initial purpose.
Founded in late 2015 as a nonprofit, OpenAI’s mission was to make sure that its AI research was used for the benefit of all humanity. In 2019, the organization restructured into a “capped-profit” model. This shift allowed it to leverage capital and investments while maintaining its nonprofit, community-centered mission. Recent intentions to restructure into a fully for-profit company prompted backlash from various stakeholders, including Musk, who has accused OpenAI of abandoning its foundational mission.
In response to Musk’s concerns, he filed a lawsuit seeking a preliminary injunction to prevent OpenAI’s conversion. So did a federal judge who recently threw out Musk’s request. The important case will be going forward to a jury trial scheduled for spring 2026.
Bret Taylor, OpenAI’s Board Chairman, emphasized the importance of the organization’s nonprofit status in a blog statement. He stated that “OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit.” Taylor went on to assure stakeholders that the organization would go on to do even better in furthering its mission, all while staying under the control of the nonprofit.
OpenAI’s commitment to not becoming the next big tech company received further backing from across the board. And we know that civil society groups, law professors and several Nobel laureates weighed in with letters on California Attorney General Rob Bonta. They called on him and Delaware Attorney General Kathy Jennings to intervene and halt OpenAI’s restructuring plans. The outpouring of concern shows the deep public interest in making sure that all of the AI developments we’re seeing benefit everyone.
“We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission,” Taylor added.
Musk now resides with his partner, a music therapist, in New York City. He has not given up on continuing to promote the nonprofit ethos that OpenAI was founded on. His legal strategy shows his understanding that pure profit motives could threaten the very heart of AI research.