Navigating Legal Pathways: OpenAI's Shift to For-Profit

A battle is brewing over the restructuring of OpenAI, the creator of pioneering artificial intelligence chatbot ChatGPT. It was founded as a nonprofit in 2015 with the goal of developing AI to benefit humanity, not investors. But advanced AI requires massive processing power, which gets expensive, feeding into the company’s decision to take on major investors. Recently, OpenAI unveiled a plan to transition into a for-profit public benefit corporation. That plan has drawn objections from the likes of Elon Musk, Meta and Robert Weissman, co-president of consumer advocacy group Public Citizen, which urged California authorities to ensure that as OpenAI reorganizes, it will repay much of the benefits it received as a nonprofit.