OpenAI has revealed that it is considering a reorganization to better integrate its for-profit and nonprofit branches.
This move comes in the wake of intense criticism and legal troubles that followed the establishment of a for-profit division in 2019, which was created alongside its original nonprofit foundation.
Potential Conversion to Public Benefit Corporation
In a recent blog post, the organization outlined its plans to potentially convert its for-profit arm into a Delaware Public Benefit Corporation (PBC).
This structure is designed for businesses that aim to serve the public good, and OpenAI clarifies that adopting the PBC status would require them to factor in the interests of shareholders, stakeholders, and the wider community as they make decisions.
By moving in this direction, OpenAI hopes to secure the vital funding necessary to continue its work, using terms similar to those of other players in the field.
Legal Challenges and Musk’s Lawsuit
Additionally, the proposed changes would empower the nonprofit side to assemble a dedicated leadership team focused on philanthropic efforts in critical areas like healthcare, education, and scientific research.
In a noteworthy development, Elon Musk, who co-founded OpenAI, took legal action against its executives, including CEO Sam Altman.
Musk’s lawsuit accuses Altman of violating the conditions tied to Musk’s initial contributions to OpenAI, suggesting that Altman deliberately exploited Musk’s altruistic instincts concerning the risks of artificial intelligence.
Criticism and New Ventures
Reflecting on the rationale behind the for-profit division, OpenAI previously explained that such a step was crucial for obtaining the large computational resources necessary to develop AI models effectively.
Meanwhile, Musk has launched xAI, the company behind the AI chatbot Grok.
He asserts that his new venture has suffered as a result of monopolistic behavior from OpenAI.
On another front, David Sacks, who is expected to assume the role of “White House AI and Crypto Czar” under President-elect Donald Trump, has connections to Musk and has been vocal in his criticism of OpenAI.
In October, Sacks remarked that he found the organization’s transition from a charity-based nonprofit to a profit-seeking enterprise concerning.
Source: Cointelegraph
