OpenAI’s unusual nonprofit structure led to dramatic ouster of sought-after CEO

By BARBARA ORTUTAY
AP Technology Writer

SAN FRANCISCO (AP) — Unlike Google, Facebook and countless other tech giants, the company behind ChatGPT was not created to be a business. Rather, its creators set it up as a nonprofit, hoping it wouldn’t be beholden to commercial interests — like Google and Facebook. While OpenAI later transitioned into a for-profit entity, its controlling shareholder remains the nonprofit OpenAI Inc. It’s this unique structure made it possible for four OpenAI board members — three of whom don’t work for the company — to oust CEO Sam Altman, leading to an employee revolt that has put the organization’s future into jeopardy.