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Nonprofit Group Joins Elon Musk’s Effort to Block OpenAI’s For-Profit Transition
Encode, a nonprofit organization focused on ensuring the voices of younger generations are heard in conversations about AI’s impacts, has requested permission to file an amicus brief in support of Elon Musk’s injunction to halt OpenAI’s transition from a nonprofit to a for-profit entity.
In a proposed brief submitted to the U.S. District Court for the Northern District of California on Friday afternoon, counsel for Encode emphasized that OpenAI’s plans to transfer control of its operations to a Delaware Public Benefit Corporation (PBC) would result in “unacceptable” consequences. The organization argues that such a move would allow OpenAI to prioritize financial returns for investors and employees over safety concerns and the public benefit.
The brief further highlights that this shift would undermine OpenAI’s original mission, which aimed to develop and deploy transformative AI technology in a way that is safe for humanity. This fiduciary duty to humanity would allegedly evaporate as Delaware law dictates that directors of a PBC owe no duty to the public at all.
Encode has been actively involved in various pieces of AI state and federal legislation, including the White House’s AI Bill of Rights and President Joe Biden’s Executive Order on AI. As an organization, it aims to empower young people to shape the future of AI development by providing them with a platform for discussion, education, and advocacy.
OpenAI’s announcement last month that it would transition from a nonprofit to a for-profit entity sparked controversy among many experts and industry figures. Critics have expressed concerns about the potential risks associated with prioritizing profit over safety in the development of advanced AI technology.
In related news, Microsoft and OpenAI recently announced their collaboration on an “open” AI model that can be used by developers around the world. The move aims to create a new era of innovation in AI while ensuring accountability and transparency throughout the process.
This article is part of our ongoing coverage of the latest developments in the AI space.
Source: techcrunch.com
