OpenAI Pledges Non-Profit Control Under New Governance Amid Criticism

Artificial intelligence pioneer OpenAI has unveiled a revised governance framework, affirming that its non-profit entity will retain control of the organization amid growing scrutiny over its evolving business model and mission.

CEO Sam Altman announced that OpenAI will become a public benefit corporation (PBC) — a legal structure that mandates alignment with a social mission — while maintaining oversight by its founding non-profit board. The move seeks to address concerns that the company, once strictly non-commercial, was drifting from its founding goal of developing AI to benefit humanity.

"We are moving to a normal capital structure where everyone has stock. This is not a sale, but a change of structure to something simpler," Altman wrote in a memo to staff.

The announcement comes after weeks of backlash, including a formal complaint to U.S. regulators by former OpenAI staff and AI experts such as Geoffrey Hinton, who argued the structural shift risked undermining public accountability.

Chairman Bret Taylor said the updated governance model was crafted after consultation with the Attorneys General of California and Delaware, where the company is incorporated.

While the new plan allows OpenAI to move away from its previously “complex” capped-profit model — seen as a roadblock to major investors like Microsoft — Altman emphasized that the non-profit will hold a significant stake in the business, giving it access to funds to advance its social goals.

“It will of course not be all used for good, but we trust humanity and think the good will outweigh the bad by orders of magnitude,” Altman stated.

Despite the move, critics remain skeptical. Former policy adviser Page Hedley, a leading voice behind last month’s regulatory appeal, said the update fails to clarify key concerns, such as technology ownership, governance transparency, and mission enforcement.

“We’re glad OpenAI is listening to civil society, but crucial questions remain,” Hedley noted.

Whether the new governance plan will satisfy investors, ethicists, or regulators remains to be seen, as OpenAI continues to balance profit-driven growth with its founding ideals.