OpenAI to no longer be controlled by a nonprofit board

[Garth Gator]

OpenAI, behind tools like ChatGPT and DALL-E, is reportedly restructuring itself into a for-profit entity, signaling a shift in its approach to the development of artificial intelligence. Originally established in 2015 to ensure that artificial general intelligence (AGI) would benefit all of humanity, the organization is now exploring a transformation into a public benefit corporation, balancing profit with societal goals.

 

This shift marks a significant departure from its original nonprofit structure, which was overseen by a board dedicated to upholding the company’s founding principles of safe and ethical AI development.

 

The company’s CEO, Sam Altman, is steering this transition, with a Reuters report suggesting he’s set to receive a 7% equity stake in the restructured organization as part of a wider strategy to attract more investment and streamline decision-making processes.

 

As mentioned earlier, the proposed restructuring would see OpenAI become a public benefit corporation, a hybrid model that allows for profit-making while maintaining a commitment to societal benefits.

 

This pivot comes at a time of internal flux for OpenAI. Recent executive departures, including that of Chief Technology Officer Mira Murati, have sparked speculation about the company’s direction. However, Altman has been quick to dismiss any connection between these exits and the restructuring plans. Speaking at the Italian Tech Week event, he framed the overhaul as a necessary step for OpenAI to reach its “next stage” of evolution.

 

Questions remain about whether OpenAI will stick to its initial objective of developing safe and beneficial AI. However, the company has reassured the public that its nonprofit arm will continue to exist, playing a vital role in maintaining oversight to ensure the core mission remains intact. 

 

This transformation is expected to have significant financial implications. OpenAI is exploring a new funding round that could value the company at $150 billion. While this influx of resources could accelerate AI research and development, it also stands to benefit major investors like Microsoft, which has already poured substantial funds into the company.

 

• https://www.vox.com/future-perfect/374275/openai-just-sold-you-out 
• https://www.reuters.com/technology/artificial-intelligence/openai-remove-non-profit-control-give-sam-altman-equity-sources-say-2024-09-25/ 
• https://apnews.com/article/chatgpt-openai-sam-altman-nonprofit-859bff5c19845f51796244e0072e2dfb 

 

 

 

Image: Rafael Henrique | Dreamstime.com