OpenAI completed conversion from nonprofit to for-profit public benefit corporation amid criticism from 60+ nonprofits
Oct 28, 2025In December 2024, OpenAI announced plans to convert from a nonprofit-controlled structure to a for-profit public benefit corporation. California AG Bonta approved the restructuring in October 2025 after extracting concessions. The deal gave Microsoft ~27% ownership and was contingent on SoftBank's $30B investment. A coalition of 60+ California nonprofits (Eyes on OpenAI) criticized the deal as setting a dangerous precedent for startups evading taxes and having 'a bazillion conflicts of interest.' Elon Musk attempted to block it, at one point offering $97.4B to acquire the company.