OpenAI transforms into a for-profit company
According to "The Information", co-founder and CEO Sam Altman told shareholders this week that he is considering transforming OpenAI from a limited-profit company model to the same "unrestricted profits" as its competitors (Anthropic, xAI) Company," a change that, if realized, would result in OpenAI's non-profit board of directors losing control of the company.
OpenAI’s current private valuation is approximately $86 billion. Its current corporate structure is described on the company's website as "a partnership between the original nonprofit and a new limited-profit division."
It stated on its website that the shift from the original "non-profit organization" to "limited profit" was to stimulate research in the field of artificial general intelligence (AGI) while maintaining the company's vision. As for why this shift is necessary, according to OpenAI, the reason is that "donations" are not enough to cover the company's work, so a new cash flow is needed to incentivize stakeholders.
However, as of now, the website still maintains a warning that stakeholders should treat their investments as donations.
"Investing in OpenAI Global, LLC is a high-risk investment. Investors may lose their capital contribution without seeing any return. It would be wise to treat any investment in OpenAI Global, LLC as a donation, with the understanding that The role of money in the AGI world can be difficult to predict.”
Musk accuses OpenAI of abandoning original intention
According to previous reports by Zombit, Tesla CEO Musk has previously accused OpenAI of abandoning its original intention of being a non-profit. At that time, Musk accused OpenAI and its founder Sam Altman of betraying the agreement made by the organization at the time of its establishment to "put technological development based on human welfare above interests." He also said that OpenAI's recent relationship with technology giant Microsoft has Undermining the organization’s original commitment to public open source general artificial intelligence (AGI). Musk wrote in the lawsuit:
“OpenAI has been transformed into the world’s largest tech company (it was founded as a non-profit): a closed-source subsidiary of Microsoft. Under its new board of directors, it is not only developing but actually refining a General Artificial Intelligence (AGI) to maximize Microsoft’s profits, not for the benefit of all mankind.”
Sam Altman restructures board of directors
Sam Altman, on the other hand, has reconfigured the board of directors to include himself and a host of handpicked stakeholders as he unleashes the idea of restructuring the company. These include former Bill & Melinda Gates Foundation CEO Sue Desmond-Hellmann, former Sony Vice President Nicole Seligman and Instacart CEO and Chairman Fidji Simo.
In addition, retired US Army general and former National Security Agency Director Paul Nakasone was recently added to the board of directors. This move also triggered strong opposition from former CIA employee Edward Snowden. Snowden posted a message on
"This is a deliberate, calculated betrayal of the rights of every human being on Earth. I warned you."
They've gone full mask-off: 𝐝𝐨 𝐧𝐨𝐭 𝐞𝐯𝐞𝐫 trust @OpenAI or its products (ChatGPT etc). There is only one reason for appointing an @NSAGov Director to your board. This is a willful, calculated betrayal of the rights of every person on Earth. You have been warned. https://t.co/bzHcOYvtko
— Edward Snowden (@Snowden) June 14, 2024
This article The Information: Sam Altman intends to transform OpenAI into a for-profit company originally appeared on Zombit.