OpenAI, the organization behind ChatGPT, has shifted from its founding mission of being a nonprofit focused on safe and beneficial AI development to becoming a for-profit entity. Initially established in 2015 by Elon Musk and others, OpenAI aimed to prioritize human safety over financial returns. However, recent changes mean that CEO Sam Altman, who previously didn't hold equity, will gain billions in equity and significant control over the company. This transition to a full-fledged for-profit benefit corporation was highlighted by the unexpected resignation of CTO Mira Murati, which left employees stunned. Critics argue this change dismantles the original nonprofit vision that was intended to prevent the concentration of power and ensure a focus on public benefit.

The company’s previous structure allowed for modest investor returns while directing excess profits to public initiatives, but with this restructuring, those constraints appear to have been lifted. Altman, who has led OpenAI since 2019, has faced tension with the nonprofit board and has sidelined them, consolidating his power in the process. Observers are concerned about the potential legality of this move, as it might entail diverting funds originally meant for public benefit to private investors. Critics, including former employees, warn that this might equate to a form of theft from the nonprofit's mission. The shift raises alarms about the need for regulation in AI, as Altman’s actions demonstrate the risks of prioritizing profit over safety in the AI industry. Advocates are calling for increased oversight to hold AI companies accountable to public safety, underscoring the urgent need for regulatory action as OpenAI’s transformation may serve as a cautionary tale for future AI governance.