Artificial intelligence (AI) company OpenAI is reportedly contemplating a transition from a capped-profit corporation to a full for-profit model.
CEO and co-founder Sam Altman allegedly informed shareholders about this potential shift during the week of June 10, as reported by The Information.
If implemented, this change would result in OpenAI’s nonprofit board losing control of the company.
OpenAI currently boasts a private valuation of around $86 billion.
The company’s website describes its structure as a partnership between the original nonprofit and a new capped profit arm.
The capped profit model was designed to incentivize research in artificial general intelligence (AGI) while preserving the company’s mission.
OpenAI claimed that donations alone were insufficient to support its work, necessitating a new financial model to attract stakeholders.
However, the website still cautions that stakeholders should view their investments as donations. It states:
“Investing in OpenAI Global, LLC, is a high-risk investment.
“Investors could lose their capital contribution and not see any return.
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“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 push to restructure the company coincides with Altman’s recent changes to the board, which now includes several newly appointed members.
These additions are Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former Sony vice president; Fidji Simo, CEO and chair of Instacart; and retired U.S. Army general and former National Security Agency (NSA) director Paul Nakasone.
Nakasone’s appointment has drawn criticism, notably from former U.S. intelligence contractor Edward Snowden.
On X.com, Snowden advised the public to “not ever trust @OpenAI or its products,” specifically mentioning ChatGPT.
He argued, “There is only one reason for appointing an @NSAGov Director to your board,” calling it “a willful, calculated betrayal of the rights of every person on Earth. You have been warned.”
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