OpenAI is now pursuing further restructuring into a public benefit corporation.to become a public benefit corporation, which would significantly reduce the nonprofit’s oversight role. The restructuring is critical to OpenAI’s ability to raise additional capital and compete in the expensive AI development race. The company has said the nonprofit arm would remain and be well-resourced through the transition.
The lawsuit contends OpenAI abandoned its founding charter through these structural changes. Judge Gonzalez Rogers cited evidence, including a 2017 diary entry by OpenAI co-founder Greg Brockman in which he wrote, “We’ve been thinking that maybe we should just flip to a for-profit,” according to court documents referenced by Reuters.
Parties respond to the court decision
In a statement following the hearing, OpenAI called the lawsuit baseless, the report added. “Mr Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” the company said.
