OpenAI had been pursuing this corporate restructuring for more than a year, first quietly, and then—as details leaked—in the public eye.The public arena brought lots of critics, from regulators and AI safety advocates to competitors—all of whom objected to OpenAI detaching from its non-profit parent company.

OpenAI abandoned a controversial effort to place its juggernaut artificial-intelligence business under control of a for-profit entity and will instead remain under its founding nonprofit board. The move could complicate the company’s future fundraising efforts.

OpenAI has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman's power over the pioneering maker of ChatGPT.