OpenAI’s move to for-profit: Is it indeed ‘illegal’?

OpenAI’s potential transformation into a for-profit corporation is not impossible, but it will likely not be an easy process.

On Sept. 25, Reuters reported that ChatGPT developer OpenAI is working on a plan to restructure its core business from no-profit to for-profit.

The move has received controversial feedback from the community, with billionaire entrepreneur Elon Musk questioning the legality of such a business transformation.

Musk took to X on Sept. 26 to argue that one “can’t just convert a nonprofit into a for-profit,” adding that such a conversion is “illegal.” However, that’s not the case, according to several sources.

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OpenAI’s potential transformation into a for-profit corporation is not impossible, but it will likely not be an easy process.
On Sept. 25, Reuters reported that ChatGPT developer OpenAI is working on a plan to restructure its core business from no-profit to for-profit.The move has received controversial feedback from the community, with billionaire entrepreneur Elon Musk questioning the legality of such a business transformation.Musk took to X on Sept. 26 to argue that one “can’t just convert a nonprofit into a for-profit,” adding that such a conversion is “illegal.” However, that’s not the case, according to several sources.Read more