OpenAI looks to convert to for-profit company

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OpenAI's history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

FILE - Open AI Chief Executive Officer Sam Altman speaks at the Advancing Sustainable Development through Safe, Secure, and Trustworthy AI event on Sept. 23, 2024, in New York. OpenAI's history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said. “OpenAI will be stronger for it as we are for all of our transitions,” Altman told the Italian Tech Week event in Turin. “I saw some stuff that this was, like, related to a restructure. That’s totally not true. Most of the stuff I saw was also just totally wrong,” he said without any more specificity.OpenAI said Thursday that it will still retain a nonprofit arm.

“The principled staff exodus at OpenAI is another example of their true long-term goal: profit,” said Mozilla president Mark Surman in an emailed statement. “As far as we can tell, OpenAI no longer exists as a public interest organization.” This unique structure made it possible for four OpenAI board members — Sutskever, two outside tech entrepreneurs and an academic — to brieflylast November in what was later described as a dispute over a “significant breakdown in trust” between the board and top executives. But with help from a powerful backer, Microsoft, Altman was brought back to the CEO role days later and a new board replaced the old one.

In 2016, the goal of OpenAI’s founders — a group that included Altman and Tesla CEO Elon Musk — was to “advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.”

 

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OpenAI looks to shift away from nonprofit roots and convert itself to for-profit companyOpenAI's history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company...
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