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

San Francisco: Unlike Google, Facebook and other tech giants, the company behind ChatGPT was not created to be a business. It was set up as a nonprofit by founders who hoped that it wouldn’t be beholden to commercial interests.

But the arrangement got complicated.

While OpenAI later transitioned to a for-profit model, its controlling shareholder remains the nonprofit OpenAI Inc. and its board of directors. This unique structure made it possible for four OpenAI board members – the company’s chief scientist, two outside tech entrepreneurs and an academic – to oust CEO Sam Altman on Friday.