A coalition of labor unions and nonprofit organizations is urging California Attorney General Rob Bonta to block OpenAI’s plan to become a for-profit company. As reported by The Los Angeles Times, the group includes LatinoProsperity and the California Teamsters, among others. They argue that OpenAI is straying from its original mission of advancing safe and beneficial artificial intelligence by shifting focus toward financial gain.
OpenAI, initially founded as a nonprofit research entity, was restructured in 2019 to operate as a for-profit company under the governance of a nonprofit board. In 2024, it announced plans to convert into a public-benefit corporation within two years—a move the group behind the petition believes prioritizes profits over public welfare. They claim that OpenAI is not protecting its charitable assets and is undermining its founding purpose by enabling a small circle of investors and executives to profit from transformative AI technologies.
Though California law permits OpenAI’s current structure, the petition contends that the organization’s latest strategy reflects a deliberate attempt to bypass its nonprofit responsibilities. Critics argue that OpenAI’s efforts are designed to attract more investment while removing the limitations that come with nonprofit oversight—limitations that prioritize ethical development over commercial application.
OpenAI responded by reaffirming its commitment to its mission, stating, “We’re not selling it, we’re doubling down on its work.” The company highlighted the recent creation of an advisory commission aimed at strengthening its nonprofit focus and engaging with community leaders.
The move to become a public-benefit corporation would eliminate restrictions on investor returns, providing OpenAI with greater financial flexibility. Still, critics remain concerned about transparency and accountability. They point to past events, such as the 2023 ousting and reappointment of CEO Sam Altman and a reshuffling of board members more aligned with profit goals, as evidence of a shift away from the organization’s original vision.
