"Anything that frees up OpenAI to focus on profit is likely to benefit Microsoft's investment in the company," said Sarah Kreps, director of the Tech Policy Institute in the Brooks School of Public Policy at Cornell University.
OpenAI's huge valuation, labyrinth of for-profit subsidiaries, and potentially risky technology make a for-profit switch legally and publicly complicated — and could invite pushback from regulators. The idea of upending the current structure has already attracted interest from US and European regulators and exacerbated an ideological divide between scientific and business leaders whoThe technology, they argue, poses an existential threat to humankind and, therefore, should be operated in a way that's subject to public scrutiny.
By law, a nonprofit must use its assets only for its stated charitable purposes. And OpenAI's assets, which include all of OpenAI's subsidiaries, may not be sold for anything less than fair market value. “I think that's the best way for them to get the public on their side, the states on their side, and the IRS on their side."What OpenAI is expected to do as part of its transition is register as a public benefit corporation.
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