OpenAI Timeline - Time Magazine

An OpenAI Timeline: Musk, Altman, and the For-Profit Shift | TIME Tech 
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 A Timeline of the Battle for OpenAI: Musk, Altman, and the For-Profit Shift

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 by Nikita Ostrovsky Updated: Loading... Open AI CEO Sam Altman speaks during a summit on June 2, 2025 in San Francisco, California. 

 Open AI CEO Sam Altman speaks during a summit on June 2, 2025 in San Francisco, California. Justin Sullivan—Getty Images by Nikita Ostrovsky Updated: Loading... After almost a year of negotiations, OpenAI announced Tuesday that it has completed its restructure to a public benefit corporation, with a separate nonprofit Foundation focussed on “health and curing diseases” and “technical solutions to AI resilience” holding a $130 billion stake in the for-profit arm—just shy of the $135 billion stake that Microsoft received, which it said represented 27% ownership.

 In an emailed statement to TIME, California Attorney General Rob Bonta said that “we secured concessions that ensure charitable assets are used for their intended purpose, safety will be prioritized, as well as a commitment that OpenAI will remain right here in California. With these important concessions in place, we will not be in court opposing OpenAI’s recapitalization plan.”

 Founded in 2015 as a nonprofit, rather than a for-profit company, OpenAI promised to develop AI “in the way that is most likely to benefit humanity.” With billions of dollars in investments from Microsoft, Japanese bank SoftBank, and chipmaker Nvidia, however, OpenAI faced increasing corporate pressure to separate its business operations from the nonprofit, which placed a cap on the profits that investors could receive, in order to attract further investments and to have the option to IPO.

 Critics of the change have included nonprofits concerned about OpenAI’s adherence to its mission and cofounder-turned-competitor, Elon Musk. While restructuring, OpenAI served subpoenas to at least seven advocacy groups that opposed the shift. While OpenAI claimed it was looking for ties to Elon Musk, the affected nonprofits saw a different motive: “It sure looks like it's an attempt to intimidate folks,” says Judith Bell, chief impact officer of the San Francisco Foundation, one of the advocacy groups that received a subpoena.

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 Here’s how the battle for OpenAI’s restructure unfolded—and what might remain in store.

 OpenAI referred TIME to a statement in a blog post outlining its corporate structure.

 December 2015: OpenAI founded as a nonprofit

 OpenAI, Inc., is incorporated as a nonprofit in Delaware, with an initial funding commitment of $1 billion from Sam Altman and Elon Musk, among others. The company’s stated goal : “to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.”

 March 2019: OpenAI announces a for-profit subsidiary

 The OpenAI nonprofit lau

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