OpenAI outlines bold restructuring to rid itself of control of its nonprofit, Reuters reports

OpenAI was born in 2015 as a non-profit organization whose goal was to “advance digital intelligence in ways that most benefit humanity as a whole.” That structure also had the clear objective of Do not limit your work to the need to generate financial returns. But this changed in 2019 when it was announced OpenAI Global LLCa for-profit, limited-profit subsidiary aimed at raising capital. They needed money, and total donations were far from what they had initially expected.

At that time, OpenAI promised that The non-profit organization would remain intact and its board would continue to be the governing body for all its activities. Sources consulted by Reuters They suggest that this scenario could change, once again, due to the need for more money. As we know, the firm is looking for new investors to fulfill its mission, but its current entrenched structure (see image below) would be causing some actors with capital to lose interest. The solution? Change the structure.

OpenAI and the control of your non-profit organization

The aforementioned news agency points out that the commercial arm of OpenAI is working on a very important restructuring. According to them, it consists of get rid of control of the original non-profit organization. The board of directors of the latter, let us recall, was behind Altman’s dismissal in November of last year. After the businessman’s return, the board chairs were renewed, but they are still there, directly validating every important decision of the company, at least for now.

Current OpenAI structure

The plan for the move is not yet finalized. Sources say it is being reviewed by lawyers and shareholders. While details are thin, an OpenAI spokesperson did offer some clues. “We remain focused on building AI that benefits everyone, and we are working with our board of directors to ensure we are best positioned to succeed in our mission. The nonprofit is core to our mission and will continue to exist,” he told Reuters.

Sources suggest that the nonprofit will have a minority stake in the for-profit company. If it materializes, this move could be very effective in attracting a largest number of investorsalthough it would come with concerns from some members of the sector. The centralisation of power within a leading company in artificial intelligence could translate into security risks, especially when it has lost its original super-alignment team.

Images | OpenAI | Milad Fakurian | Village Global

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