10/20/2025

Coalition Challenges OpenAI’s Nonprofit Governance

OpenAI operates under an unusual structure

EyesOnOpenAI, a coalition of dozens of California foundations and nonprofits, is challenging OpenAI, the company behind ChatGPT, accusing it of failing to uphold the transparency and accountability standards required of charitable organizations. The coalition called on the California attorney general to investigate whether up to $300 billion in OpenAI's charitable assets are being used for private profit instead of public good.

OpenAI operates under an unusual structure where a nonprofit entity oversees a for-profit subsidiary that develops commercial AI products like ChatGPT. EyesOnOpenAI has been raising concerns about whether the company is staying true to its founding mission of developing AI that benefits humanity.

The EyesOnOpenAI coalition points to OpenAI’s recent renegotiations with Microsoft and other investors as proof of an interest in profit over public good.

Please select this link to read the complete article from Nonprofit Quarterly.