Overview

• OpenAI announced it will remain a nonprofit organization, reversing its December 2024 plan to transition to a for-profit model.
• The decision follows discussions with civil society leaders and the attorneys general of California and Delaware, addressing ethical and legal concerns.
• SoftBank’s previously conditional $30 billion investment, part of a $40 billion funding round, may now decrease to $20 billion under a funding clause.
• Critics, including Elon Musk, argued that a for-profit model would prioritize shareholder interests over public benefit and AI safety.
• Elon Musk’s lawsuit to block the for-profit transition remains active, with a trial scheduled for spring 2026 unless withdrawn.