OpenAI, the company behind ChatGPT, is reportedly planning a major shift in its business structure, sparking criticism from cofounder Elon Musk. According to reports, OpenAI could transition from its current hybrid structure, which blends nonprofit and capped-profit elements, into a for-profit benefit corporation. This change, which could also include a new round of funding valuing the company at over $150 billion, would give CEO Sam Altman an equity stake for the first time, with reports suggesting it could be around 7 percent. Musk reacted strongly, tweeting, “this is deeply wrong,” reflecting concerns about the company’s evolving direction.
OpenAI initially launched with the aim of advancing artificial intelligence (AI) in a transparent and ethical way. Musk, who played a key role in its founding, has expressed frustration over its pivot from “open source” AI development to a more profit-driven model. He had previously criticized the company for moving away from its original mission, claiming that OpenAI had turned into a “closed-source” enterprise chasing maximum profit.
Recent developments point to a major restructuring at OpenAI. Sources suggest that the nonprofit will retain a minority stake while relinquishing control to its for-profit arm. This shift mirrors the structure of rival AI company Anthropic, which operates as a for-profit benefit corporation. By adopting this model, OpenAI is expected to become more appealing to investors, fueling concerns among those who believe the company’s pursuit of profits may come at the expense of safety and ethics in AI development.
These internal shifts have been accompanied by significant executive changes. OpenAI’s president Greg Brockman has reportedly been on leave, while its CTO Mira Murati recently announced her exit. Former chief scientist Ilya Sutskever also left the company earlier this year.
For Musk, the concern isn’t just financial—it’s ethical. He believes the company was founded to counter Google’s AI dominance and operate with openness and transparency. He even revealed that he named OpenAI to emphasize the “open” nature of its work. Now, as OpenAI seems to pivot to a more profit-centric model, Musk remains critical of its direction.
