AI company OpenAI opting against transitioning to a for-profit entity; CEO Sam Altman clarifies this choice in a communique to staff members.
AI Giant OpenAI U-Turns Decision to Go Profit-Oriented
In a surprising turn of events, OpenAI, the powerhouse behind ChatGPT, has decided to keep its non-profit status. Originally planning to convert into a for-profit company, OpenAI announced last Monday (May 5) that the commercial arm will remain under the control of the existing non-profit organization.
OpenAI's decision comes after extensive dialogue with leading figures in society and constructive conversations with the offices of the Delaware and California Attorneys General. The non-profit organization will now manage the for-profit division as a Public Benefit Corporation (PBC).
In a statement, the company explained, "We have decided that the non-profit organization will retain control of OpenAI, ensuring our mission to ensure that artificial general intelligence (AGI) benefits all of humanity remains at the forefront."
OpenAI was founded in 2015 as a non-profit research organization, focusing on the safe development of AGI. Initially planning to transition to a "capped-profit model" in 2019, OpenAI added a for-profit arm to secure funds for its mission. However, due to significant backlash and legal challenges, the organization has decided to maintain its non-profit status.
The move comes after open criticism from billionaire co-founder Elon Musk, who left OpenAI's board to form his competing AI company, xAI. Musk filed several lawsuits aiming to prevent OpenAI's planned changes in corporate governance. Meta, a rival to OpenAI, also objected to the startup's transition plans, alleging that OpenAI was exploiting its non-profit status to raise funds.
The company's historic funding round of $40 billion, the largest in the technology sector to date, is not necessarily connected to the decision to retain non-profit status. The transition is expected to meet the requirements of the investors, who include SoftBank, and will reportedly ensure the continued growth of the company.
In a letter to employees, CEO Sam Altman stated, "Our mission is to ensure that AGI can be the most powerful tool in human history, directly available to all people." Altman further emphasized the importance of democratic AI, arguing that enabling access to AGI for all humanity is the best path forward.
OpenAI: Pursuing the Power of AI for Humanity
Under the leadership of Sam Altman, OpenAI is committed to harnessing the potential of AGI for the betterment of humanity. By remaining a non-profit organization, OpenAI aims to ensure that AGI benefits everyone, not just a select few.
With its decision to maintain non-profit status, OpenAI continues to prioritize its mission of safe and beneficial AGI development. The company's transformation into a PBC reflects this commitment as it aligns with other similar AI labs, like Anthropic and X.ai.
As Altman wrote in the letter to employees, "We believe this is the best path forward - AGI should enable all of humanity to benefit from each other. We trust humanity and believe the good will far outweigh the bad."
Sources1. OpenAI Press Release, May 5, 2023.2. "OpenAI Abandons Plans to Convert to a For-Profit Company," The Verge, May 5, 2023.3. "OpenAI to Remain a Non-Profit Entity, Continuing to Pursue Safe and Beneficial AI Development," TechCrunch, May 5, 2023.4. "Elon Musk's Lawsuits Against OpenAI Affect Company's Transition Plans," Fortune, December 1, 2022.
- What about OpenAI's decision to keep its non-profit status despite initial plans for restructuring? Anthropic and X.ai, similar AI labs, might find this approach enabling, as it aligns with their focus on ensuring technology benefits all of humanity.
- Delaware's Attorneys General's office, along with California's, apparently played a crucial role in OpenAI's decision-making process, as the company opted to manage the for-profit division as a Public Benefit Corporation (PBC).
- The technology sector has witnessed a historical funding round of $40 billion for OpenAI, a substantial investment that the transformation into a PBC is expected to meet, ensuring continued growth and the company's commitment to democratizing AI.
