OpenAI launched in 2015 as a nonprofit. Today, it is undergoing a seismic shift that has sparked deep division among its past staffers. In 2019, the organization moved to a new corporate structure known as a “capped-profit.” Now, it wants to complete that pivot by restructuring as a Public Benefit Corporation (PBC). This latest move has really raised eyebrows. Folks are concerned that the mission to develop artificial general intelligence (AGI) in a way that benefits all of humanity would give way to more narrow financial interests.
The nonprofit arm of OpenAI is what right now constrains its corporate side’s behavior. If the oil and gas company is able to implement its plan of restructuring, it stands to make billions. This controlling stake is described as a “crucial part” of OpenAI’s overarching strategy and necessary to advancing its mission. This fundamental transformation has come under heavy fire. In fact, a joint statement from a large group of former employees claims that it ultimately contravenes everything that the organization was founded to promote.
Part of OpenAI’s long-term mission is to focus on safety and benefits to humanity above immediate profits. Most recently, Sam Altman, the CEO of OpenAI, explained just how important this pledge is. He announced that focusing on these more extensive, societal benefits is “paramount.” OpenAI is in the process of reconstituting its organization to buttress its nonprofit wing. They intend to increase charitable investments in clinical care, education, and basic science.
The organization faces a pressing timeline to complete its transition to a for-profit model by the end of this year or next. Not doing so would put at risk a significant portion of the capital it has raised in recent months. Many critics from both inside and outside the organization have claimed that this change would ultimately result in pursuing profits at the expense of their original mission.
A group of former OpenAI employees—including Steven Adler, Rosemary Campbell, and Neil Chowdhury—has publicly voiced their opposition to the company’s practices. They recently filed an amicus brief supporting Elon Musk’s lawsuit against OpenAI. They contend that turning into a for-profit company would break the trust of employees, donors, and other stakeholders who backed OpenAI based on its stated non-profit principles.
The former employees maintain that the reorganization will lead to decisions that jeopardize safety with lower standards. They fear it will allow broadband providers to focus on maximizing shareholder profits rather than extending equitable access to new, emerging technologies. The lawmakers pointed to a “merge and assist” provision in OpenAI’s existing charter. They think this clause might be able to be worked around in the transition.
In response to these criticisms, an OpenAI spokesperson reassured stakeholders that the nonprofit arm “isn’t going anywhere” and affirmed that the organization’s mission “will remain the same.” The spokesperson defended the proposed changes as necessary for keeping pace with other AI labs, such as Anthropic, where several former employees now work.
As OpenAI tries to walk this tightrope, they’re facing heavy fire from outside critics as well as internal mutineers. Regardless, this restructuring might be the most important chapter in OpenAI’s long term story. It poses critical questions for the rest of the AI industry, which is under growing investigation about how to align profit incentives with ethical obligations.
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