Critics Say OpenAI’s Revised Restructuring Still Prioritizes Profit Over Public Good

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A group of former OpenAI employees and AI experts — including renowned computer scientist Geoffrey Hinton — has submitted a new letter to California and Delaware attorneys general, warning that OpenAI’s latest organizational restructuring still fails to uphold its founding mission of developing artificial intelligence for the benefit of humanity.

The group, calling itself Not For Private Gain, first criticized OpenAI earlier this year when the company proposed a plan to reduce control by its nonprofit parent entity. Facing backlash, OpenAI scaled back the changes and announced a revised plan in May: to convert its for-profit unit into a Public Benefit Corporation (PBC), with the nonprofit retaining major shareholder status.

Despite this shift, the group argues in its May 12 letter that the revised structure still allows for investor interests to outweigh ethical safeguards:

  • Under the current setup, OpenAI’s nonprofit has full operational control over the for-profit entity, including executive hiring and firing. The group says this control would be weakened under the new PBC, undermining accountability.

  • They also note that while the current for-profit entity is legally bound to prioritize OpenAI’s mission and charter over profits, a PBC has no such explicit legal obligation.

OpenAI responded, stating: “The nonprofit would continue to have control over the PBC, full stop. Any suggestion otherwise is not accurate.”

Broader Concerns and Musk’s Involvement:

The restructuring debate has sparked wider criticism, including from Elon Musk, OpenAI’s co-founder and now rival via his company xAI. Musk is currently suing OpenAI for allegedly breaching its founding agreement by prioritizing commercial goals over public benefit. A lawyer representing Musk backed the letter, dismissing OpenAI’s revised structure as “nothing but window dressing.”

OpenAI’s main corporate backer, Microsoft, has invested more than $13 billion, and the restructuring is viewed as a means to attract additional capital needed to remain competitive in the rapidly evolving and costly AI sector.

While a Public Benefit Corporation is designed to balance profits and public interest, critics remain skeptical that the new model will provide the necessary governance and enforcement mechanisms to prevent the misuse of powerful AI technologies.

ASM to Pass Tariff Costs to Customers, Maintains Competitive Edge

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ASM International, Europe’s second-largest semiconductor equipment supplier, announced it will pass on any tariff-related cost increases to customers and the broader value chain. In a meeting with Bank of America analysts, ASM’s CEO and CFO emphasized that the company’s manufacturing flexibility ensures it won’t be at a disadvantage compared to global peers.

Key Points:

  • ASM said it would adjust pricing to offset potential cost pressures from U.S. trade tariffs, a strategy aligned with competitors like ASML, which previously stated that U.S. chipmakers would bear the bulk of such costs.

  • The Dutch company manufactures wafer fab processing equipment, vital for chipmakers like Intel and TSMC as they adopt next-gen Gate-All-Around transistor designs.

  • In other areas, ASM competes with major U.S. firms like Applied Materials and LAM Research, and is noted to be more exposed to the U.S. market than other European peers such as ASML and BE Semiconductor.

Market Outlook:

ASM also provided a bullish forecast for China, saying Chinese sales could hit the high end—or exceed—their 2025 guidance. The company previously estimated that China would represent between 20–29% of its total sales in 2025.

This positive outlook aligns with ASML’s recent commentary, which noted stronger-than-expected Chinese demand in its own Q1 report.

Despite rising geopolitical tensions and trade restrictions, ASM appears confident in navigating the shifting global semiconductor landscape, leveraging pricing power, regional flexibility, and strong demand from Asia.

China Slams U.S. for ‘Abusing’ Export Controls Over Huawei AI Chip Guidance

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China has sharply criticized the United States for what it called the “abuse of export control measures”, following new U.S. guidance warning companies against using Huawei’s Ascend AI chips. The Chinese Ministry of Commerce said the move threatens the stability of global semiconductor supply chains and vowed to take action to protect the rights of its domestic companies.

At a press conference on Thursday, Commerce Ministry spokesperson He Yongqian urged Washington to “correct its practices” and accused the U.S. of targeting Chinese tech firms unfairly.

Background:

  • On Tuesday, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued new guidance stating that companies using Huawei’s Ascend chips—the firm’s most advanced AI semiconductors—risk violating U.S. export controls.

  • These chips are produced by Huawei, a Shenzhen-based tech giant already subject to sweeping U.S. restrictions, and are seen as direct competitors to products from American chipmakers like Nvidia in the Chinese AI market.

China’s Reaction:

The Chinese government views the BIS warning as a deliberate attempt to suppress China’s tech advancement and influence in artificial intelligence. The Ministry emphasized that it will take “necessary measures” to safeguard the legitimate interests of Chinese enterprises.

The dispute underscores growing U.S.–China tensions over semiconductor technology and AI dominance, with Washington seeking to restrict China’s access to critical hardware and Beijing accusing the U.S. of weaponizing trade rules to stifle competition.

This development also comes as the global tech industry becomes increasingly fragmented, with countries pursuing “chip sovereignty” strategies to reduce reliance on foreign suppliers.