May 5, 2025:
OpenAI Retains Nonprofit Control Amid Restructuring - OpenAI has decided against spinning off a for-profit arm, retaining nonprofit control while restructuring as a public benefit corporation. This choice comes after talks with civic leaders and legal authorities, addressing concerns from former employees and competitors like Elon Musk's xAI Corp.
The restructuring aims to balance investor interests and public benefit, though terms with major backers like SoftBank and Microsoft may need further negotiation. This move coincides with the upcoming launch of GPT-5, featuring advanced capabilities powered by the new o3 reasoning model.
