OpenAI Abandons For-Profit Plan After Elon Musk Lawsuit, Expands Asia Data Centers, Launches OpenAI for Countries

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Updated May 8, 2025, 02:15 PM

OpenAI, the artificial intelligence company behind ChatGPT, has decided to continue operating as a nonprofit organization, abandoning its previous plan to restructure into a for-profit entity. This decision follows legal pressure from Elon Musk, who sued OpenAI last year alleging that the company had deviated from its original mission of prioritizing public good over profit. Despite OpenAI's revised control plans, Musk's lawsuit will proceed. The legal dispute resulted in OpenAI maintaining control under its nonprofit entity, which is seen as a temporary win for Musk. Meanwhile, OpenAI is expanding its global operations, including launching the "OpenAI for Countries" initiative to customize AI applications for local needs in health and education. The company has also started data center operations in India and other key Asian markets such as Japan, Singapore, and South Korea to support local data residency requirements for enterprise and educational customers. Microsoft, a major partner of OpenAI, is reportedly negotiating to retain access to OpenAI's technology beyond 2030 but may relinquish profit rights in exchange for traditional equity. The ongoing developments highlight tensions within OpenAI between its nonprofit roots and commercial ambitions under CEO Sam Altman.

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#OpenAI #ChatGPT #Elon Musk #Musk #OpenAI for Countries #India #Asian #Japan #Singapore #South Korea #Microsoft #Sam Altman

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Sources

business-standard.com(2)hindustantimes.com therundown.ai l.letemps.ch

AIM

@Analyticsindiam

OpenAI has introduced data residency support in Asia, allowing enterprises and institutions in Japan, India, Singapore, and South Korea to store data locally while using its products. This move enables eligible API, @ChatGPTapp Enterprise, and Edu customers to keep user https://t.co/8ZJTaqPKaU

Hindustan Times

@htTweets

Musk claims ‘OpenAI betrayed its mission and the public’ in scathing court filing https://t.co/ScZr5dS6x0

The Rundown AI

@TheRundownAI

Top stories in AI today: - OpenAI takes Stargate project global - Figma adds AI across its design suite - Speed through your emails with Superhuman - Mistral’s cost-efficient AI and enterprise platform - 4 new AI tools & 4 job opportunities Read more: https://t.co/QsvPRAMHz9 https://t.co/KAlAAJd74G