In December, OpenAI proposed converting its for-profit arm into a public benefit corporation (PBC), aiming to attract more investment while pursuing social goals. The plan would have reduced the nonprofit parent’s control, though it would remain a major shareholder.

(Reuters) -Elon Musk plans to proceed with his highly-watched lawsuit against OpenAI, his lawyer Marc Toberoff said on Monday, hours after the AI startup dialed back its earlier plan to remove control by its non-profit arm.

After months of pursuing a plan to convert itself into a for-profit business, OpenAI is reversing course and said Monday its nonprofit will continue to control the company that makes ChatGPT and other artificial intelligence products.