According to OpenAI, its organizational structure needs to change in order to further its goal of guaranteeing artificial general intelligence (AGI). AI which is capable of doing the majority of human jobs, benefits all people.
Currently, the business is a nonprofit-controlled for-profit organization with a “capped profit” portion for employees and investors. However, the company said in a blog post on Friday that it intends to start converting its current for-profit business into a Delaware Public Benefit Corporation (PBC). The common stock and the OpenAI objective as its public benefit interest.
Those particulars had already been publicized. The New York Times reported in December that OpenAI was negotiating to pay its nonprofit billions of dollars to relinquish control. But this is the first public memo that OpenAI has released outlining its plan.
OpenAI wrote in a single post
“As we enter 2025, we will have to become more than a lab and a startup — we have to become an enduring company,”.
“The world is moving to build out a new infrastructure of energy, land use, chips, data centers, data, AI models, and AI systems for the 21st century economy. We seek to evolve in order to take the next step in our mission.”
OpenAI says showing the PBC would allow it to
“balance shareholder interests, stakeholder interests, and a public benefit interest”
“raise the necessary capital with conventional terms.” It would also create one of the best-resourced nonprofits in history, OpenAI claims; OpenAI’s existing nonprofit would receive shares in the PBC “at a fair valuation determined by independent financial advisors.”
“We have a nonprofit and a for-profit today, and we will continue to have both,”
“Our current structure does not allow the board to directly consider the interests of those who would finance the mission and does not enable the nonprofit to easily do more than control the for-profit. The PBC will run and control OpenAI’s operations and business, while the nonprofit will hire a leadership team and staff to pursue charitable initiatives in sectors such as health care, education, and science.”
In 2015, the nonprofit research lab OpenAI was established. However, it developed its current structure with outside financing from venture capitalists and businesses like Microsoft as its trials became more and more capital-intensive.
Read More News
