OpenAI has backtracked on plans to turn into a for-profit company after outcry from politicians, civic leaders, and Elon Musk.
After “hearing from civic leaders” and attorney generals, the plans have been scrapped, according to Bret Taylor, chairman of OpenAI’s board.
The move is likely to limit the power of chief executive Sam Altman over the pioneering maker of ChatGPT.
“OpenAI was founded as a non-profit, is today a non-profit that oversees and controls the for-profit, and going forward will remain a non-profit that oversees and controls the for-profit.
“That will not change,” Mr Altman said in a blog post on Monday.
Last year, OpenAI announced controversial plans to hand over control to its for-profit arm instead of the more restrictive non-profit body that is currently in control.
Read more: Musk v Altman: The battle to become king of AI
Money has been a topic of debate at the company for years.
Artificial intelligence is expensive to develop, and when co-founder Elon Musk left OpenAI in 2018, he warned that Google’s DeepMind project was going to overtake it if Mr Altman couldn’t find more income.
As well the non-profit body that has always controlled OpenAI, Mr Altman then set up a for-profit arm to try and bring in cash.
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In response, Mr Musk launched a legal battle, saying the company was risking its mission to make artificial intelligence for the “benefit of humanity”.
When Mr Altman then announced the for-profit arm would take control of OpenAI, Musk asked a judge to intervene, but was rejected.
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He even tried to buy the company for $97.4bn (£78.7bn), leading to Mr Altman telling Sky News: “The company is not for sale, neither is the mission.”
“We’ll happily buy Twitter though.”
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Now the plans have been scrapped and the start-up’s structure will remain “extremely close” to the current one, according to Mr Taylor.
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The company will still change the structure of its for-profit arm to allow more capital-raising to keep pace in the AI race.
