US EditionOpenAI to remain under non-profit control in change of restructuring plans
- On Monday, OpenAI announced it will retain control of its for-profit operations under its nonprofit parent instead of fully converting to a public benefit corporation.
- This reversal follows legal pressure, investor concerns, and petitions from advocates urging protection of OpenAI's original charitable mission.
- The nonprofit will remain a significant shareholder and select the board of the for-profit public benefit corporation, ensuring ongoing oversight.
- CEO Sam Altman explained that after consulting with community representatives and engaging with the Attorney General offices in California and Delaware, they chose to keep the nonprofit organization in charge.
- This decision allows OpenAI to raise up to $40 billion while maintaining mission control and continuing development of AI tools like ChatGPT, valued at $300 billion.
282 Articles
282 Articles
Utopia can be exchanged for ordinary capitalism | Björn Jeffery
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…
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 …
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