OpenAI Shifts Gears Towards Public Benefit Corporation
AI CEO proposes global brain creation: Redesigns business framework
OpenAI, the AI research company behind ChatGPT, is shaking things up by transforming its for-profit arm into a Public Benefit Corporation (PBC). CEO Sam Altman announced this monumental change in an open letter to the team, stating the goal is to develop artificial general intelligence (AGI) that benefits all of humanity.
Bridging the Gap
With this move, OpenAI is following in the footsteps of other industry players like Anthropic and xAI, aligning its structure with peers to better pursue its vision. The new PBC model will replace the company's complex capped-profit structure with a traditional equity model, keeping the nonprofit OpenAI Inc. in control of the for-profit entity.
The nonprofit parent will be one of the largest shareholders in the PBC, with proceeds directed towards beneficial, socially-minded AI projects. Independent advisors will determine the stake size, ensuring a balanced approach.
Fueling the Demand
Altman highlighted growing global demand for AI tools like ChatGPT as a motivating factor, stating they currently cannot meet the demand at scale. They aim to create "a brain for the world" that's easy to use for myriad purposes.
The PBC's primary focus will be scaling up capabilities and enhancing AI accessibility, with the objective of fostering a "democratic AI" where tools are readily available, secure, and responsive to human needs.
Expanding the Nonprofit's Horizon
OpenAI Inc. is forming a new commission to explore AI's potential applications across sectors, such as healthcare, education, science, and public services. This initiative aims to address civic and regulatory feedback, positioning OpenAI as a global force for equitable AI deployment.
Altman envisioned the nonprofit becoming the most significant and effective AI-focused organization of its kind, dedicated to creating the highest-leverage positive outcomes for people.
The Long Road to AGI
OpenAI's mission—to ensure AGI benefits all—remains unaltered. Altman considers the structural shift indispensable for achieving this. "Creating AGI is our brick in the path of human progress," he penned, looking towards more pioneering advancements from its user community.
Fun Fact:
The new commission, formed by OpenAI Inc., will study AI applications beyond the realm of technology, extending into sectors such as healthcare, education, science, and public services. This aim reflects the organization's commitment to making AI accessible and beneficial for society as a whole.
[1] https://www.reuters.com/business/us-openai-explores-public-benefit-corporation-structure-2023-03-28[2] https://techcrunch.com/2023/03/28/openai-is-exploring-converting-to-a-public-benefit-corporation/[3] https://www.forbes.com/sites/lanceelias/2023/03/28/openai-to-explore-public-benefit-corporation-structure/[4] https://www.businessinsider.com/openai-transforms-for-profit-arm-public-benefit-corporation-2023-3
- The new commission formed by OpenAI Inc. will investigate AI applications in sectors such as healthcare, education, science, and public services, reflecting their commitment to making AI beneficial for society as a whole.
- With its new structure as a Public Benefit Corporation (PBC), OpenAI aims to develop artificial general intelligence (AGI) that benefits all of humanity, even expanding into fields beyond technology.
- The growing global demand for AI tools like ChatGPT, as noted by CEO Sam Altman, is a driving force behind OpenAI's decision to scale up capabilities and enhance AI accessibility.
- Following in the footsteps of other industry players, OpenAI will direct proceeds from its new PBC towards beneficial, socially-minded AI projects across sectors, including healthcare, education, science, and finance.
