Open AI now reversing that plan to spin off into a for-profit company, announcing it will remain under the control of the nonprofit arm amid pushback from Elon Muskins and regulators.

But the startups also balancing the interest of investors and its biggest backers, including Microsoft and SoftBank.

For that, we're going to turn to Kate Rooney today digging into the implications in today's tech check.

Hey, Kate. Hey, Carl. Yeah, so investors that I'm talking to are not thrilled about

opening eyes. Pivot here after months of public pressure the company is going to be keeping much

of its current, some say messy corporate hierarchy, but it will convert part of the business

to a more traditional structure of public benefit corporation, which has a dual

mandate to serve some sort of mission, in this case AI, and then a fiduciary duty as well.

It also gets rid of a former cap on profits the company had.

But the wrench, we're all talking about. Instead of spinning off that nonprofit, still going to control the overall business,

and it's going to get a stake in the company.

CEO Sam Altman and Chairman Brett Taylor yesterday telling reporters they made the concession

after hearing out California and Delaware, attorneys general, and then some other civic leaders

as well.

Elon Musk, though, is the elephant in the room.

He was a founder of this company.

He's been suing to block this entire process. And Musk's lawyer saying the update here does not change any of their legal plans.

Open AI executives pushed back yesterday on the idea that it was in any way response to Elon Musk,

Brett Taylor, the chair, saying setting up Open AI for the future was the only basis for the decision.

Altman went a bit further.

He said, we are obsessed with our mission.

The media was obsessed with Elon Musk.

...