Date: April 23, 2025
A coalition of former OpenAI workers, backed by three Nobel Prize winners and several prominent AI researchers, has sent a letter to the attorneys general of California and Delaware urging them to block a planned restructuring that would convert OpenAI from a nonprofit organization into a for-profit/public benefit corporation. Financial Times+2ABC News+2
Key concerns raised:
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The group argues that shifting to for-profit status risks sacrificing safety, accountability, and OpenAI’s original mission to ensure artificial general intelligence (AGI) benefits all of humanity. ABC News+2Financial Times+2
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Former employees warn that in the new structure, incentives driven by investor returns could reduce oversight and weaken ethical or safety constraints. ABC News+1
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Specific safeguards, like a “stop-and-assist clause” in OpenAI’s nonprofit charter, are cited as potentially vulnerable under the new arrangement. AP News+1
OpenAI’s response:
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OpenAI says that any changes would still include preserving a nonprofit arm, and that the for-profit portion would be structured as a public benefit corporation. ABC News+1
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The company claims the restructure is intended to secure funding and scale operations while continuing to serve broad public goals. ABC News+1
Legal / Regulatory status:
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OpenAI is incorporated in Delaware and operates out of San Francisco, making both state attorneys general relevant for oversight. ABC News+1
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Delaware AG Kathy Jennings and California AG Rob Bonta have been asked to review whether the restructuring would violate the nonprofit’s charitable purpose. Jennings has affirmed she would review transactions with public interest in mind. Bonta’s office has signaled it is seeking more information but has been relatively quiet publicly. ABC News+1