OpenAI, an artificial intelligence (AI) company, is reportedly contemplating a shift from a capped-profit structure to an unrestricted for-profit model. The CEO and co-founder, Sam Altman, allegedly discussed this potential change with shareholders around the week of June 10, as first reported by The Information. If this transition occurs, it could mean that OpenAI’s nonprofit board would no longer have control over the company.
Currently valued at around $86 billion, OpenAI describes its current setup as a collaboration between its original nonprofit entity and a new capped-profit division on its website. The initial move to a capped-profit model was intended to encourage research in artificial general intelligence (AGI) while upholding the company’s mission. The company stated that traditional donations were insufficient to support its work, hence the need for a new financial model to engage stakeholders.
Despite these potential changes, OpenAI’s website still advises stakeholders to view their investments as donations. The reported restructuring coincides with CEO Sam Altman’s reorganization of the board, which now includes prominent figures such as Sue Desmond-Hellmann, Nicole Seligman, and Fidji Simo. Additionally, retired U.S. Army general and former NSA director Paul Nakasone has recently been appointed to the board.
The inclusion of Nakasone drew criticism from former U.S. intelligence contractor Edward Snowden, who cautioned against trusting OpenAI and its products. Snowden specifically mentioned ChatGPT and raised concerns about the implications of having an NSA director on the board. He concluded with a stark warning that this move was a deliberate betrayal of global rights. In related news, Tesla investors have sued Elon Musk for allegedly diverting resources and talent to xAI projects.