OpenAI CEO Sam Altman has been working on wriggling out from under the control of the caller ’s nonprofit board ever since they ( briefly)fired him . But , after several campaign to prevent the move , including alawsuit filed by OpenAI co - founder Elon Musk , the companyannouncedon Monday that it will keep its structure for now .
The desire to dump its nonprofit structure stems primarily from one thing : money . Being organise as a nonprofit means that OpenAI is n’t driven by providing a return on investing for shareholder ( at least in theory ) , but instead focalize on its statedmissionof insure “ artificial cosmopolitan intelligence operation benefits all of humanity . ” Being a nonprofit has also lead to some complications for OpenAI ’s fundraising efforts . The companysecured $ 40 billion in funding , primarily from SoftBank , originally this twelvemonth , but that money was contingent on OpenAI completing its be after restructuring to a for - net entity . Now that support is in oblivion .
OpenAI will continue to operate a commercial-grade subsidiary , which is the part of the company that Altman heads . But it will be transition from an LLC to a Public Benefit Corporation ( PBC ) , per the caller . The reason for that alteration , some theorize , is that it will make it easy for OpenAI to eventually become publically trade in . The non-profit-making board will be a primary shareowner of the PBC and will keep on to superintend and keep in line the company . The shifting will also seemingly shed the capped - profit social organisation that the company operate with while an LLC , whichrestrictedthe return that it could ante up back to investors at 100x .
Elon Musk and Sam Altman sit in chairs on stage© Michael Kovac (Getty Images)
The endeavor to restructure to a for - profit entity was forgather with foe at fundamentally every turn for OpenAI , though patently the cause for that pushback were not always altruistic . Musk , for instance , seemed to mostly be carrying out his lawsuit to stop the restructuring aspart of a grudgeagainst Sam Altman after the two had a falling out . Meta also fought the change , though it ’s concentrated to imagine that ’s not at least in part due to the fact that the companionship is creating its own ChatGPT competitor and would wish to hamper OpenAI ’s ability to raise money . Other nonprofit alsotook issue with OpenAI ’s set about shift , concerned that the company would utilize money that was supposed to be used for the “ public goodness ” to just maximize its own net profit rather .
collapse that Altman managed tosuccessfully oust the boardthat tried to remove him forallegedly lie to themand now has othermembers in his back pocket , it ’s probably fair to wonder if he ’s in reality take in good on the nonprofit ’s stated mission or if he ’s just trying to maximize the bottom argument with the go - ahead of a plug-in that is more aligned with him and stands to make a lot of money one way or another .
Elon MuskLawsuitOpenAISam Altman
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