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OpenAI says its industry must evolve to advance its work to ensure that Artificial General Intelligence (AGI) — AI that can complete many tasks that humans can — benefits all.
The company is currently a for-profit corporation managed by a non-profit, with a “for profit” portion of investors and employees. But in a blog post published on Friday, the company says it plans to convert the existing fund into a Delaware Public Benefit Corporation (PBC), with common shares of OpenAI’s goods and services as its public benefit.
Those principles were he said elsewhere. In December, The New York Times to be revealed that OpenAI was in talks to pay its nonprofit billions to end its monopoly. However, this is the first time OpenAI has put its ideas into the public domain.
“As we enter 2025, we will be much more than a lab and startup — we must be a sustainable company,” OpenAI wrote in a statement. “The world is moving to create new electronics, land use, chips, data centers, data, AI models, and AI systems for the 21st century. We want to evolve to take the next step in our work.”
OpenAI says that implementing a PBC can help to “harmonize the interests of stakeholders, the interests of stakeholders, and the interests of the public” in decision-making and allow “raising the necessary funds with a common voice.” It would also create one of the most profitable ventures in history, OpenAI claims; OpenAI’s existing non-profits will receive shares in the PBC “upon due diligence determined by independent financial advisors.”
“We have nonprofits and for-profits today, and we will continue to have both,” OpenAI wrote. “Our current structure does not allow the board to directly consider the interests of potential funders and does not allow the nonprofit to do more than manage profits. The PBC will manage and manage the operations and business of OpenAI, while the nonprofit will hire a leadership team and staff to run it. philanthropy in areas such as health care, education, and science.”
OpenAI was founded in 2015 as a non-profit research lab. But as his experiment grew, it grew was created its current structure, taking foreign investment from VCs and companies, including Microsoft.
In October, OpenAI he was promoted $ 6.6 billion at a cost of $ 157 billion, which brings its revenue to $ 17.9 billion. The company still expects to lose money this year, however – $5 billion, according to to CNBC — and how its latest investment is needed to complete a profitable turnaround in less than two years.
The system runs into problems.
One of the co-founders of OpenAI, billionaire Elon Musk, is filed The order prohibits the company from turning a profit, and criticizes OpenAI for abandoning its original service offering. Musk also claimed that OpenAI has taken funding from his AI company, xAI, based on promises from investors not to fund them.
OpenAI has to be invited Musk’s complaints are “baseless” and a case of sour grapes.
Facebook’s parent company and AI partner, Meta, is also supporting efforts to stop OpenAI’s conversion. In December, Meta sending In a letter to California Attorney General Rob Bonta, he argued that allowing the change would have “disruptive effects on Silicon Valley.”
“If the new OpenAI business is approved, non-profit investors will receive the same benefits as those who invest in for-profit companies while also benefiting from tax incentives provided by the government,” Meta wrote in the letter. .
OpenAI’s competitors like xAI and Anthropic are designed as PBCs but do not have a non-profit sector.
What is the architecture of OpenAI as it is today? in the end led to the sudden dismissal of CEO Sam Altman last November, which did not please investors – in especially Microsoft. It also gives the OpenAI team the ability to determine when OpenAI has acquired AGI, and to remove this AGI from license agreements that developers have with customers.
One of those customers is Microsoft – and Microsoft and OpenAI are said to have a In reality, the definition of internal currency on AGI. According to The Information, the two companies signed an agreement last year saying that OpenAI has just acquired AGI while developing AI systems that can generate $100 billion in revenue.
OpenAI continues to address it and to go out about super talent Another reason for concern is that the company prioritizes commercial products at the expense of safety. One former employee, Carroll Wainwright, who researched the integration of AI systems with security policies, wrote in a post on X this fall that OpenAI “was designed as a non-profit (but) acted as a for-profit” and “shouldn’t (be) trusted when it promises to do good afterwards.”
In a mailing list at X, Miles Brundage, a long-time legal researcher who left OpenAI in October, said he has “serious concerns” about OpenAI’s reform plan as described.
“First, there is little discussion of the actual details of the authority, although that is the main issue,” Brundage wrote. “Secondly, a non-profit organization with a large amount of money on its side cannot replace the business decisions of the PBC … it is related to the original purpose of the non-profit … Third, although there are many opportunities for the non-profit organization with a lot of money to help ‘philanthropy in such areas. such as healthcare, education, and science,’ that is a very small part of OpenAI’s original goal. How about improving security and good policy?”
Brundage said he worries that the nonprofit OpenAI will become a “side hustle” that gives PBC permission to operate as a “normal company” without addressing potentially critical areas.
“Besides more, what other methods are being implemented … he wrote. “(A)’s OpenAI knows (in part from the work I wrote there), the competition also starts to cut corners. What are the PBCs and non-profits going to do about this?”
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