Yigit Taha OZTURK 
ChatGPT creator OpenAI has officially abandoned plans to convert into a fully for-profit company. Instead, it will remain under nonprofit control while operating through a Public Benefit Corporation (PBC) model — a for-profit structure legally bound to prioritize public benefit alongside shareholder interests.
CEO Sam Altman emphasized that this will not hinder OpenAI’s ability to raise massive funding needed for AI development. “We currently need hundreds of billions of dollars, and may eventually need trillions,” Altman wrote in a message to staff.
Profit Structure Dispute and Musk Lawsuit
Originally founded in 2015 as a nonprofit, OpenAI created a for-profit arm in 2019 to support fundraising. Despite remaining under nonprofit control, plans in 2024 hinted at a full spinout — which sparked backlash.
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One of the most vocal critics was Elon Musk, OpenAI’s co-founder, who filed a lawsuit accusing Altman of violating the charitable intentions of the original founding. Musk alleged that Altman planned all along to convert the organization into a for-profit entity.
Musk later launched xAI and developed Grok, positioning it as a rival to ChatGPT, while accusing OpenAI of anti-competitive behavior.
Massive Revenue Goals Remain
Despite the governance shift, OpenAI’s financial ambitions remain bold. According to Bloomberg, the company expects to generate $12.7 billion in 2025, growing to $29.4 billion by 2026. In March, OpenAI reportedly raised $40 billion from SoftBank, at a $300 billion valuation.
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