Why OpenAI is giving up on becoming a for-profit company
Has Sam Altman given in to Elon Musk? The international press is scrutinizing the announcement on Monday, May 5, by the leading generative artificial intelligence company that it is reversing its change of status. Paradoxically, this return to a non-profit entity could raise more funds.
Sam Altman “proves right with Elon Musk,” headlines The Washington Post regarding the OpenAI boss’s decision on Monday, May 5, to abandon plans to transform his company into a for-profit corporation.
Elon Musk, co-founder of OpenAI, a startup he left after clashing with its management, has repeatedly criticized the restructuring plan , which he said would have compromised his company's "essential control over artificial intelligence (AI) technology ." The Tesla and SpaceX boss even went to court to block the project, the Washington daily reports.
This "major shift" should allow OpenAI to "effectively maintain the current structure" of the company, Bloomberg estimates . OpenAI "is backtracking on its plan to become a more conventional for-profit company under growing pressure from former employees, scientists, and competitors," the business media continues .
This decision is the result of the "storm of criticism and legal challenges" caused by the plan to transform ChatGPT into a for-profit company, announced in December, CNN confirms . Besides Elon Musk, others had expressed their "concerns", recalls the American news media. Would OpenAI
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