Miguel Afonso Caetano<p>"OpenAI’s hybrid structure has included a capped-profit limited partnership that was created in 2019. The original nonprofit is the controlling shareholder and would have been spun out as an independent entity if OpenAI had succeeded in its efforts. With that change no longer taking place, OpenAI’s investors receive convertible notes that will turn into equity.</p><p>A group of ex-OpenAI employees, Nobel laureates, law professors and civil society organizations sent a letter last month to attorneys general in California and Delaware requesting that they halt the startup’s restructuring efforts out of safety concerns.</p><p>In the letter, which was delivered to OpenAI’s board, the group wrote that restructuring to a for-profit entity would “subvert OpenAI’s charitable purpose,” and “remove nonprofit control and eliminate critical governance safeguards.”</p><p>Page Hedley, OpenAI’s former policy and ethics advisor — and lead organizer of Not For Private Gain, the group that wrote the letter — said in a statement that while it’s a positive step that the company is listening to concerns, “crucial questions remain.” One is around whether OpenAI’s commercial goals will “continue to be legally subordinate to its charitable mission,” and another is, “Who will own the technology that OpenAI develops?” said Hedley, who is lead organizer of the group that wrote the letter.</p><p>Taylor said on the call with reporters that OpenAI’s current structure includes the nonprofit board and subsidiary, but that the nonprofit board is really the sole governing body. Taylor shared what he called a “technical detail” about the board makeup after restructuring</p><p>There will be a separate board for the public benefit corporation, but the nonprofit will appoint those directors, and “on day one, we plan on having the same directors for both,” Taylor said."</p><p><a href="https://www.cnbc.com/2025/05/05/openai-says-nonprofit-retain-control-of-company-bowing-to-pressure.html" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">cnbc.com/2025/05/05/openai-say</span><span class="invisible">s-nonprofit-retain-control-of-company-bowing-to-pressure.html</span></a></p><p><a href="https://tldr.nettime.org/tags/AI" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>AI</span></a> <a href="https://tldr.nettime.org/tags/GenerativeAI" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>GenerativeAI</span></a> <a href="https://tldr.nettime.org/tags/OpenAI" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>OpenAI</span></a> <a href="https://tldr.nettime.org/tags/BigTech" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>BigTech</span></a></p>