OpenAI looks to convert itself to for-profit company, source says

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AI company’s board is considering a decision that would change OpenAI into a public benefit corporation, source says

Open AI CEO Sam Altman speaks at the Advancing Sustainable Development through Safe, Secure, and Trustworthy AI event on Sept. 23, in New York.OpenAI’s history as a non-profit 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.

OpenAI’s CEO Sam Altman acknowledged in public remarks Thursday that the company is thinking about restructuring but said the departures of key executives the day before weren’t related. OpenAI is not the first technology company to try to balance commercial and humanitarian objectives but its manoeuvres drew a rebuke Thursday from Mozilla, which blends a non-profit foundation and research hub with a company known for making the Firefox web browser.

Much of the conflict at OpenAI has been rooted in its unusual governance structure. Founded in 2015 as a non-profit with a mission to safely build futuristic AI to help humanity, it is now a fast-growing big business still controlled by a non-profit board bound to its original mission. 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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