OpenAI's for-profit shift sparks legal probes over potential charitable trust breach
OpenAI, the team behind ChatGPT, is under legal and political fire as it converts its for-profit subsidiary into a public benefit corporation (PBC)—a move announced late last year.
Attorneys general in California and Delaware are investigating whether this change breaks charitable trust laws.
OpenAI says it wants to balance making money with its original mission, while ensuring that the nonprofit will retain control over the new company.
$50 million for community causes
More than 60 California nonprofits and labor groups are worried OpenAI's new structure could put profits ahead of public good.
To ease concerns, OpenAI has promised $50 million for community causes and brought on advisers with government ties.
The switch could unlock nearly $19 billion for AI research and hardware—but the backlash shows how tricky it is to mix big tech ambitions with social responsibility.
How this plays out might set the rules for future AI companies trying to do both good and well.