OpenAI has decided to maintain its nonprofit status and abandon plans to transition to a for-profit model. In a recent blog post, CEO Sam Altman stated that the organization will convert its for-profit unit into a Public Benefit Corporation (PBC) under nonprofit control. PBCs are for-profit entities that must prioritize a social mission alongside shareholder interests. This reversal comes after previous considerations to spin out the nonprofit, which had been founded in 2015. Altman emphasized that this decision would not hinder OpenAI's ability to secure funding for AI development, which requires significant capital. Notably, the organization anticipates revenues of $29.4 billion by 2026, having recently raised $40 billion from Softbank at a $300 billion valuation. This decision follows controversy, including Elon Musk's lawsuit against Altman, alleging manipulation regarding the nonprofit's founding. OpenAI has asserted its commitment to oversight and control by its nonprofit structure.

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