OpenAI to remain under non-profit control in change of restructuring plans

ANALYSIS. Open AI is being forced to back down from its plan to transform into a commercial company. But more interesting is a sentence in which the company's view of the future of AI seems to have taken a completely new direction.

OpenAI’s nonprofit mission fades further into the rearview

OpenAI was founded as a nonprofit with a mission to build safe artificial general intelligence for the benefit of humanity. For a while, that structure made sense. But in 2019, the company made a discovery that changed everything: Scaling up AI models—with more data, compute, and parameters—led to predictably stronger results. The insight was formalized in a 2020 paper titled “Scaling Laws for Neural Language Models,” and it reshaped OpenAI’s tr…

OpenAI’s new for-profit plan leaves many unanswered questions

OpenAI has abandoned its controversial restructuring plan. In a dramatic reversal, the company said Monday it would no longer try to separate control of its for-profit arm from the non-profit board that currently oversees operations. "We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney Genera…

The AI company OpenAI remains, unlike previously planned, a non-profit organization. This prevents no one from making money.

OpenAI Forced to Abandon Plans to Become For-Profit

Money Matters OpenAI may be raking in the investor dough, but thanks in part to erstwhile cofounder Elon Musk, the company won't be going entirely for-profit anytime soon. In a blog post this week, the Sam Altman-run company announced that it would remain under the control of its original non-profit governing board as it shifts its planned restructuring efforts of its for-profit arm. "Our for-profit LLC, which has been under the nonprofit since …

Sam Altman, CEO of OpenAI announced Monday, May 5th that his company would eventually remain a not-for-profit company. This project of change of status had fed a wide opposition bringing together ex-collaborators, academics up to billionaire Elon Musk.