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OpenAI Lays Out Its For-Profit Transition Plans
In a move that has sparked controversy in the AI community, OpenAI has announced its plan to convert from a non-profit organization to a for-profit one. This decision comes after years of criticism that the company’s structure and priorities are at odds with its philanthropic mission.
According to reports, OpenAI’s board of directors will have the power to determine when the company achieves Artificial General Intelligence (AGI), and this achievement will exempt OpenAI from licensing agreements it has in place with customers. One of these customers is Microsoft, which has a specific internal definition of AGI that requires AI systems to generate at least $100 billion in profits.
The decision to go for-profit has raised concerns among some in the AI community that OpenAI’s priorities may be shifting away from its original mission to advance the field and towards commercial gain. This concern is further exacerbated by the company’s recent outflow of high-level talent, with one former employee stating that OpenAI “was structured as a non-profit [but] acted like a for-profit” and should not be trusted when promising to do the right thing later.
OpenAI’s competitors, such as xAI and Anthropic, are structured as Public Benefit Corporations (PBCs) without a nonprofit component. However, OpenAI has chosen to maintain its existing structure despite the concerns and criticisms raised by its peers and investors.
The move is also facing opposition from Meta, Facebook’s parent company, which has expressed concerns that the conversion would have “seismic implications for Silicon Valley.”
Source: techcrunch.com
