OpenAI has decided to abandon its controversial restructuring plan, opting to maintain nonprofit control over its operations amid feedback from civic leaders and attorney general offices. Initially, the company proposed separating control of its for-profit arm, citing needs for increased capital. The reversal follows significant pushback from various stakeholders, including former employees and public figures like Elon Musk. As a result, the nonprofit will remain a significant shareholder, though concerns remain about its governance structure and how control will be maintained moving forward, sparking questions from legal experts on future board composition.
OpenAI's decision to abandon its restructuring plan aims to keep the nonprofit in control, responding to concerns raised by civic leaders and stakeholders.
Chairman Bret Taylor stated, 'We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue...'
The previous restructuring plan faced backlash from various groups and individuals, including Elon Musk, who voiced strong opposition to the idea.
Jill Horwitz questioned OpenAI's ability to maintain control, inquiring about how board appointments would work and the influence of for-profit investors.
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