A coalition of former OpenAI employees, supported by Nobel laureates and leading artificial intelligence (AI) experts, has petitioned the attorneys general of California and Delaware to block OpenAI's proposed transition from a nonprofit organization to a for-profit public benefit corporation (PBC). The group contends that this structural change could compromise OpenAI's original mission to develop artificial general intelligence (AGI) for the benefit of humanity, potentially prioritizing investor returns over public welfare.

OpenAI, established in 2015 as a nonprofit, has been at the forefront of AI research, aiming to develop AGI that benefits humanity. In December 2024, the organization announced plans to transition its for-profit arm into a Delaware PBC to attract more capital and stay competitive in the costly AI industry. This restructuring is intended to balance investor interests with the company's charitable mission.

The petitioners, including AI pioneers Geoffrey Hinton, Margaret Mitchell, and Stuart Russell, argue that the proposed restructuring would prioritize investor returns over OpenAI's original mission. They express concerns that placing AGI development under profit-driven control poses significant safety risks and diminishes public accountability. The group emphasizes that OpenAI's original mission was to safely develop AI for humanity's benefit.

OpenAI, currently valued at $300 billion, contends that the restructuring is necessary to secure continued funding, including a recent $30 billion investment led by SoftBank. The proposed change would alter governance by reducing nonprofit oversight and introducing a more traditional investor-led model. OpenAI asserts that the PBC structure will still support the public good while enabling the organization to raise the necessary capital with conventional terms.

The attorneys general of California and Delaware are reviewing the petition. Under California law, a business converting from a nonprofit to a for-profit corporation must return the value it removes from the nonprofit sector in a process overseen by the state's Attorney General. The Department of Justice is committed to protecting charitable assets for their intended purpose, and the decision now rests with state authorities, who must determine if the conversion aligns with the public interest.

The proposed restructuring and the ensuing petition highlight the tension between innovation, profit, and ethical responsibilities in AI development. Critics argue that the shift to a for-profit model could weaken public accountability and heighten existential risks associated with AGI. The debate underscores the challenges of balancing the pursuit of advanced AI capabilities with the need to ensure these technologies are developed and deployed in a manner that prioritizes public welfare and safety.

As OpenAI navigates its proposed transition to a for-profit PBC, the outcome of this debate will have significant implications for the future of AI development and governance. The decision by the attorneys general will not only impact OpenAI's trajectory but also set a precedent for how AI organizations balance innovation, funding, and ethical responsibilities.