OpenAI Retreats From Spinoff Plan Amid Scrutiny Over Nonprofit Control

OpenAI abandoned its plan to spin off its for-profit arm and instead proposed converting it into a public benefit corporation under its nonprofit's control, but critics say the new structure may still shortchange the charity. The move requires approval from state attorneys general, who are being urged by nonprofit advocates to ensure fair value and proper oversight. At stake is not only control of OpenAI but its commitment to developing AI for public benefit.