OpenAI will remain a non-profit organization, but not entirely

OpenAI, the company behind ChatGPT, has announced a new corporate governance plan after high-profile conflict within management and pressure from the public. Despite its intention to move to a more traditional business model, the organization emphasizes: key control will remain with its non-profit entity.

At the same time, the organization will continue to operate as a non-profit.

Transitioning to a public model while retaining control

According to CEO Sam Altman, OpenAI will become a special type of public company — Public Benefit Corporation (PBC). This model assumes that the company is pursuing not only profit, but also a public mission. At the same time, the main power will still belong to the non-profit board of directors, which is important in terms of protecting the original goals of the project.

A similar structure was already proposed by OpenAI in December 2023, but at that time it was not specified which party would retain control. Now the point is clear: the non-profit side will have a significant stake in the business unit, including access to funding.

A similar structure has already been proposed by OpenAI in December 2023, but at that time it was not specified which party would retain control.

Why it matters

OpenAI began as a non-profit organization focused on building AI for the benefit of humanity. However, as ChatGPT grew in popularity and commercial activities expanded, the company was criticized for straying from its original values. This includes — co-founder Elon Musk, as well as former employees and respected researchers, including Jeffrey Hinton.

A group of experts has sent a formal appeal to regulators in California and Delaware, demanding that they block the transition to the new model, fearing the commercialization of AI without proper oversight.

Management Comments

OpenAI Bret Taylor said the decision came after «constructive dialog» with Delaware and California authorities. Altman said the new structure will simplify investment processes and allow it to raise more funds while staying true to its mission.

«We are moving to a normal capital structure where everyone has shares. This is not a sale, but a simplification», —Altman wrote in a letter to employees.

He added that growing and expanding access to AI requires investment, but is not inconsistent with the company’s goal:

«It will help people create incredible things for each other and move society forward» — he said. Yes, some of the AI will not be used for good, but we believe in humanity and we believe the benefits will be orders of magnitude greater»

And we believe that the benefits will be orders of magnitude greater» — he said.

Skepticism remains

Despite OpenAI’s statements, questions about the company’s future have not gone away. Former OpenAI ethics advisor Paige Headley, who has been involved in public criticism of the organization, said, «We’re glad OpenAI has begun to hear the public’s voice, but key questions remain unanswered: who will own the technology and how will it be prioritized».”

The OpenAI will remain a nonprofit organization, but not entirely was first published on ITZine.ru.