OpenAI, the company behind ChatGPT and the most notable advances in artificial intelligencehas announced that it is entering the final phase of a radical transformation in its organizational structure. Until now it was registered as a non-profit organization, something that will no longer be so and that raises many questions about how it may affect its intentions regarding the evolution of artificial intelligence.
It is worth remembering that OpenAI was born co-founded among others by Sam Altman, its current CEO, or Elon Musk, and it did so with a purpose that may sound naïve: “That artificial intelligence would benefit all of humanity.” That matched its non-profit purpose, but… How can artificial general intelligence (AGI) benefit all humanity while ensuring its economic sustainability?
On the technical and fiscal aspect, its pivot towards a hybrid model will see it become a Public Benefit Corporation (PBC) in Delawarewith ordinary shares that would integrate both shareholder interests and social objectives. According to the company, this step will allow it to raise the necessary capital to continue its mission and, at the same time, establish one of the most robust non-profit funds in history.
The background of the transformation
Until now, OpenAI has operated under a model that combines a nonprofit controlling a for-profit arm, limited by a profit ceiling. This peculiar model sought to balance technological innovation and financial interests, but it seems to have reached a limit.
In a recent statement, OpenAI admitted that: “As we approach 2025, we need to be more than a lab or a startup. We must become a lasting company.” The company justifies the change by arguing that the world is in the midst of building infrastructure for the 21st century.: data centers, AI models and advanced systems. According to OpenAI, this movement is essential to keep up with this global transformation.
The challenges of the new model and the criticisms of Elon Musk
OpenAI’s plan is not without controversy. Elon Musk, the company’s co-founder and staunch critic of its current direction, has sought an injunction to block the transition, accusing OpenAI of abandoning its initial philanthropic mission. Musk has also noted that the company has prevented its investors from funding its own artificial intelligence initiative, xAI..
On the other hand, Meta, the parent company of Facebook and competitor of OpenAI, has also raised its voice against this transformation. In a letter to California Attorney General Rob Bonta, Meta said the change could have “seismic implications for Silicon Valley”. According to Meta, the model proposed by OpenAI could allow investors to obtain tax benefits originally intended for non-profit activities, which would be a dangerous precedent.
The future of artificial intelligence and the role of OpenAI
The debate about OpenAI’s new organizational model also extends to the company’s internal sphere. Former employees have expressed concern about the possible prioritization of commercial products on research security. Carroll Wainwright, a former researcher at the company, noted that “OpenAI was structured as a nonprofit, but acts like a for-profit.” Others, like Miles Brundage, warn of the risks of allowing the public benefit component to serve only as a cover for conventional business decisions.
Furthermore, the change in structure not only affects OpenAI’s mission, but also its competitiveness in the sector. Microsoft, one of its main investorshas signed agreements with the company that stipulate an internal definition of AGI based on its ability to generate at least $100 billion in profits.
A fragile balance
While OpenAI moves towards this new stagethe challenge lies in demonstrating that its vision of balancing social mission and economic sustainability is not only viable, but also ethically sound. The future of artificial intelligence will not only depend on the models and technologies developed, but on the structures that companies choose to operate in a world increasingly influenced by these tools.
#OpenAI #born #nonprofit #company #cease #change
