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May 7, 2025
OpenAI, the developer of the well-known chatbot ChatGPT, has made a surprising U-turn in its corporate strategy. The originally planned conversion from a non-profit organization to a for-profit company has been halted for the time being. Instead, the commercial arm of the company will remain under the control of the existing non-profit organization. This decision was made after consultations with the Attorneys General of California and Delaware, who might have blocked the restructuring.
The unexpected change in strategy raises questions about the future of OpenAI. Various investors, including the Japanese technology group Softbank, had invested billions of dollars under the premise that OpenAI would become for-profit. It is currently unclear whether these investors will exercise their right to reclaim their investments due to the new development. The position of major investor Microsoft is also still uncertain. According to reports, the company is currently examining how the new structure affects its investment of almost 14 billion US dollars and whether it remains sufficiently secured.
The original decision to convert to a for-profit company had several reasons. In the highly competitive market of AI development, the new structure was intended to make OpenAI more attractive to investors and secure the necessary financial resources for further research and development. Another factor was the brief dismissal of co-founder Sam Altman in the fall of 2023 by the then board of directors of the non-profit organization. However, Altman returned a few weeks later after protests from investors and employees.
OpenAI's reversal has elicited different reactions. Elon Musk, co-founder of OpenAI and now a competitor with his AI company xAI, had publicly opposed the conversion and even initiated legal action. The current development should therefore be in his favor. How OpenAI's new corporate structure will affect the long-term development of AI technologies remains to be seen. The company's next steps and the reactions of investors are eagerly awaited.
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