OpenAI has announced a significant pivot, walking back previous plans to evolve into a traditional for-profit entity, according to a May 5 statement.

Instead, the organization will maintain its nonprofit roots and shift its for-profit unit into a Public Benefit Corporation (PBC), reinforcing its commitment to public interest in developing artificial general intelligence (AGI).

According to the statement, the PBC model allows OpenAI to generate revenue, while the nonprofit parent retains control and holds a substantial equity position in the new structure.

The firm noted that this approach is now common among advanced AI labs that must raise funding while staying focused on safety and long-term impact.

OpenAI CEO Sam Altman confirmed that the nonprofit will remain central to the organization’s decision-making. He noted that the revised structure follows consultation with civic leaders and regulatory officials, including the attorneys general of California and Delaware.

Altman explained that keeping nonprofit control will give OpenAI the resources it needs to scale responsibly. He also said the company wants its nonprofit arm to become one of the most effective in history, with a mission to ensure AGI benefits everyone.

He added:

“Instead of our current complex capped-profit structure—which made sense when it looked like there might be one dominant AGI effort but doesn’t in a world of many great AGI companies—we are moving to a normal capital structure where everyone has stock. This is not a sale, but a change of structure to something simpler.”

OpenAI’s legal battle with Musk

OpenAI’s reversal comes as legal tensions with Elon Musk, one of its co-founders, intensify.

The Tesla CEO had accused the company of drifting from its founding mission and filed a lawsuit earlier this year to halt its shift toward profit-driven goals.

Notably, Musk had also made a $97 billion offer to buy OpenAI’s controlling nonprofit arm, which was not accepted.

In response to OpenAI’s announcement, Musk’s legal team reportedly dismissed the move as cosmetic.

The lawyers argued that the updated structure allows private parties, including Sam Altman and Microsoft, to benefit from assets originally intended for the public good.

Meanwhile, OpenAI also recently countersued Musk, alleging he attempted to sabotage the organization through a fake takeover offer and a coordinated campaign to damage its reputation.

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Circle, the issuer behind the USDC stablecoin, has firmly denied rumors suggesting it plans to apply for a US banking license.

The firm’s Chief Strategy Officer, Dante Disparte, clarified on social media that Circle has no plans to become a bank or any other type of insured depository institution.

Disparte emphasized that the firm is focused on aligning with future regulations on payment stablecoins instead. He added that Circle is prepared to register under a state or federal trust charter or operate through a non-bank license if required.

Disparte’s statement directly counters circulating reports suggesting that Circle and other major crypto firms like Coinbase were preparing to apply for banking licenses due to the favorable regulatory environment under President Donald Trump.

The speculations are unsurprising, considering there has been a noticeable shift in how US regulators are approaching the crypto industry.

For context, the Federal Reserve recently rolled back previous guidance that limited traditional banks’ ability to interact with digital assets, including dollar-based tokens.

The reversal is seen by many as a green light for broader crypto adoption. Jason Karsh, a business leader at Blocks, welcomed the change, calling it a meaningful step toward making crypto a practical part of everyday finance.

Stablecoin legislations

Disparte suggested that the firm focus on helping the US Congress pass stablecoin legislation supporting innovation while protecting consumers.

Disparte said:

“We urge Congress to pass bipartisan payment stablecoin legislation now to champion American innovation, stability, and consumer safety.”

These comments come as the US Congress debates two key bills to shape the future of stablecoin regulation in the country.

The first bill is the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and it recently cleared the House Financial Services Committee. The second, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is also progressing through the legislative pipeline.

The bills propose new standards for liquidity, reserves, and compliance with anti-money laundering rules. Lawmakers hope the legislation will help maintain the global influence of the US dollar by building trust around US-based stablecoin issuers.

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