By Lubwama S.

OpenAI, the organization behind ChatGPT, has unveiled plans to restructure its operations to address longstanding criticism and legal challenges stemming from its dual nonprofit and for-profit framework. Since establishing its for-profit division in 2019 to fund cutting-edge AI model development, OpenAI has faced scrutiny over its balance of profit-driven and public-interest goals.

Elon Musk (Left) with Sam Altman

To address these concerns, OpenAI is reportedly considering transitioning its for-profit business into a Delaware Public Benefit Corporation (PBC), a legal structure designed for private companies committed to producing public goods. This change aims to foster greater transparency and responsibility in securing funding while reinforcing OpenAI’s nonprofit mission.

The restructuring will enable OpenAI to expand its efforts in healthcare, education, and scientific research by hiring a dedicated leadership team to oversee these initiatives. These changes align with the company’s broader goal of ensuring artificial intelligence benefits humanity as a whole.

Adding to the organization’s challenges, Tesla CEO Elon Musk, a co-founder of OpenAI in 2015, has filed a lawsuit against the company’s leadership, including CEO Sam Altman. Musk alleges that the executives violated provisions tied to his foundational contributions to the organization, intensifying the legal and public scrutiny surrounding OpenAI’s operations.