"We have decided on that alternative to maintain control – after listening to leaders within civil society and holding talks with the justice ministers in California and Delaware", writes Open AI's CEO Sam Altman in a message to the company's staff.
The Monday announcement comes after extensive criticism and legal disputes, including with rival Elon Musk, who has accused it of betraying the fundamental idea of serving humanity.
The purpose of making Open AI profitable was to attract large investors, according to proponents within the company.
Open AI announces that the non-profit parent company will control and be a major shareholder in a part of the company that is allowed to be profitable.
Bret Taylor, Open AI's chairman of the board, says that the solution lies "very close" to the current structure in the company, reports media company CNN.