OpenAI has dropped a plan to turn itself into a fully for-profit company. But the about-face raises a lot more questions.

“The nonprofit status significantly reduces OpenAI’s ability to raise capital, as investors would want to be able to generate a return on their investment, which is considerably harder if a non-profit controls a commercial entity,” said Gil Luria, analyst at D.A. Davidson.

In the update on Monday, Mr Altman said the non-profit would continue to control OpenAI, receiving a "big", yet-to-be determined stake in OpenAI's business arm, which would give it access to money to put towards its own goals.