OpenAI Retains Nonprofit Control, Faces Fundraising Challenges and Legal Disputes with Musk, Revises Microsoft Revenue Sharing

OpenAI has reversed its plan to convert into a for-profit company, announcing that its nonprofit entity will continue to control the organization that develops ChatGPT and other AI products. Despite this decision, legal experts and observers remain skeptical about the long-term commitment to nonprofit safeguards, which were initially promised for five to ten years and could potentially be altered in less transparent ways. Elon Musk, a co-founder turned critic of OpenAI, has renewed legal attacks against the company, accusing it of betraying its mission to serve the public interest by pursuing profit motives. Musk has also filed court motions to dismiss or delay OpenAI's countersuit against him. The nonprofit status may hinder OpenAI's fundraising efforts, making it more difficult to secure the capital needed to advance its generative AI development. Meanwhile, OpenAI has an existing agreement to share a portion of its revenue with Microsoft through 2030, but proposed changes could reduce the percentage shared with commercial partners, including Microsoft, over time. OpenAI's enterprise adoption is accelerating, with 32.4% of U.S. businesses subscribing to its services as of April 2025, up from 28% in March, while Google AI subscriptions have declined. The ongoing dispute highlights tensions between OpenAI's original nonprofit mission and its evolving financial incentives.