OpenAI reverses course and says its nonprofit will continue to control the company
After months of pursuing a plan to convert itself into a for-profit business, OpenAI is reversing course and said Monday its nonprofit will continue to control the company that makes ChatGPT and other artificial intelligence products.
Decision to Stay Nonprofit
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” said CEO Sam Altman in a letter to employees.
Recapitalization Plan
As part of what Taylor described as a “recapitalization,” the nonprofit’s existing for-profit arm will convert into a public benefit corporation “that has to consider the interests of both shareholders and the mission."
Public Benefit Corporation
Public benefit corporations were first created in Delaware in 2013 and other states have adopted the same or similar laws that require the companies to pursue not just profit but a social good.
Concerns and Advocacy
A coalition of California-based charities on Monday renewed its call for California's attorney general to investigate and questioned whether OpenAI's planned new business structure would carry out its charitable mission.
Future Investments
Altman said he still expects a large investment from Japanese technology giant SoftBank Group, which in February announced plans to set up a joint company with OpenAI to push AI services.
OpenAI’s co-founders, including Altman and Tesla CEO Elon Musk, originally started it as a nonprofit research laboratory on a mission to safely build what’s known as artificial general intelligence, or AGI, for humanity’s benefit.
If OpenAI is truly committed to benefiting humanity, it should transfer its charitable assets over to an independent public trust completely separate from any for-profit interests,” said a statement from Fred Blackwell, CEO of the San Francisco Foundation.
Conclusion
The decision by OpenAI to retain control as a nonprofit showcases the importance of considering both profit and the mission in the development of artificial intelligence products. With the ongoing support from civic leaders and continued discussions with legal authorities, OpenAI is set to navigate its future direction while upholding its charitable mission.
