The latest development from OpenAI revealed its plans behind its future restructuring towards a for-profit business, particularly as the company is looking to expand more of the company and its developments in the field of artificial intelligence. One of the things the company highlighted is that its business will still be focusing on its humanitarian mission which would use its technology for the greater good of humanity.
However, it is known that a former shareholder and co-founder of the company, Elon Musk, is actively blocking the company go forth with their for-profit change, saying that this goes against the core of OpenAI’s mission.
OpenAI For-Profit: ‘Humanitarian’ Benefits Still In Place
OpenAI released a new blog post that detailed its plans for the transition to a for-profit structure, and the company clarified that its business already offers both a non-profit and for-profit side. The company clarified that it wants to maintain both in the future, especially if its transition pushes through, and expanding more on its for-profit side would greatly benefit its “humanitarian” mission.
The company’s humanitarian mission focuses on developing artificial intelligence for the greater good of the world, and this will greatly benefit users, according to the company, in terms of AI safety, reliability, and capabilities.
The latest blog post also revealed that OpenAI already consulted its board on what steps to take towards this massive change, and it would transform its for-profit into a Delaware Public Benefit Corporation (PBC).
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Restructuring OpenAI Brings Two Structures
As per the post, OpenAI revealed that the two sides of the company in the present will not change, but its for-profit side would be seeing the landmark switch to a PBC, balancing the interests of public benefit, shareholders, and stakeholders in one. With the funds it generated from the PBC, OpenAI will be given a chance to make its non-profit sustainable, claiming that it will offer a fair valuation to continue its humanitarian benefits for all.
OpenAI’s For-Profit Change Controversy
OpenAI has mainly been a non-profit since it was founded almost a decade ago, and it dedicated its work to developing artificial intelligence whose focus was to benefit humanity once it is available for all. However, the company wants to change its business model to be a for-profit, one that would allow the company to earn more from investments, something that Musk is known to block.
In the past months, Musk has gone back and forth in filing the lawsuit against OpenAI and then withdrawing it, and this was also fueled earlier this year when many of the renowned executives of the company left the company behind. Reports claimed that executives like Ilya Sutskever, Jan Leike, and more stepped away from the company, with Leike claiming online that it is focusing more on profits than safety.
Earlier this month, Musk refiled his case against OpenAI in a bid to block the company’s transition to a for-profit business, something which the AI non-profit refuted by sharing their emails with the X owner during his stint with the company. Now, OpenAI is detailing what would happen if it transitions to a for-profit structure, and it will greatly help its business and expand more of its developments while focusing on its humanitarian mission.
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