OpenAI, an artificial intelligence (AI) business, is apparently exploring transitioning from a capped-profit corporation to an unrestricted for-profit one.
According to The Information, CEO and co-founder Sam Altman informed shareholders that he was exploring the move sometime during the week of June 10. If achieved, the move would appear to result in OpenAI’s non-profit board losing control of the corporation.
OpenAI has a stated private valuation of around $86 billion. The company’s current structure is defined as “a partnership between our original Nonprofit and a new capped profit arm” on its website.
The transition to “capped profit” was intended to promote research in the field of artificial general intelligence (AGI) while keeping the company’s goal.
According to OpenAI, the “donations” required to complete the company’s work were insufficient, necessitating the implementation of a new fund injection strategy to reward stakeholders. However, as of now, the website still warns that stakeholders should approach their investments as donations.
OpenAI says, “Investing in OpenAI Global, LLC, is a high-risk investment. Investors could lose their capital contribution and not see any return. It would be wise to view any investment in OpenAI Global, LLC in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world.”
The attempt to reform the company comes as CEO Sam Altman has restructured the board, adding himself and three newly elected members: former Gates Foundation CEO Sue Desmond-Hellmann, former Sony VP Nicole Seligman, and Instacart CEO Fidji Simo.
Paul Nakasone, a retired US Army general and former head of the National Security Agency, has also recently joined the board. Edward Snowden, a former US intelligence contractor, reacted angrily to Nakasone’s appointment to the board of directors.
On X Snowden warned, “Never trust @OpenAI or its products,” specifically citing ChatGPT. He claimed appointing an @NSAGov Director to the board is a “calculated betrayal of everyone’s rights.” He concluded, “You have been warned.”
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