OpenAI—OpenAI completed conversion from nonprofit to for-profit public benefit corporation amid criticism from 60+ nonprofits
In 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.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | primary | -1.00 |
| Corporate Transparency | -against | secondary | -0.50 |
| Overall incident score = | -1.020 | ||
Score = avg(topic contributions) × significance (critical ×2) × confidence (0.68)
Evidence (2 signals)
OpenAI completed for-profit recapitalization with Microsoft receiving ~27% ownership
On October 28, 2025, OpenAI completed its restructuring from a nonprofit-controlled entity to a for-profit public benefit corporation. Microsoft received ~27% ownership. The deal was contingent on SoftBank's $30 billion investment.
California AG Bonta approved OpenAI restructuring after extracting concessions
California Attorney General Rob Bonta approved OpenAI's recapitalization plan, saying he extracted concessions. A coalition of 60+ California nonprofits criticized the deal as 'full of holes' and setting a dangerous precedent.