More drama is enveloping generative artificial intelligence firm OpenAI, whose ChatGPT took the world by storm. The startup is looking to restructure and convert itself into a
for-profit benefit corporation in a move that would award CEO Sam Altman an equity stake. Under the new possible format, OpenAI's non-profit unit, which currently controls the firm, would take up a minority stake in the larger company, but the latest reports may have resurfaced some tensions.
Backdrop: Since its founding in 2015, OpenAI's mission has been to
develop cutting-edge AI technologies that would "benefit humanity as a whole, unconstrained by a need to generate financial return." Only a few years later, the non-profit formed a "capped profit" subsidiary, which eventually helped it attract the billions of dollars in investment that were needed to develop its large language models and other expensive generative AI offerings. Top talent was secured, and it began licensing its technologies commercially, but a schism was growing between Altman and the board that was skeptical of corporate expansion.
It ultimately
led to Altman's ouster a year ago, before he was reinstated within days, following heavy pressure from employees and investors like Microsoft (
MSFT). Now, a newly proposed structure would do away with the approvals currently needed from the nine-person nonprofit board, and some could already be expressing their hesitations. Chief Technology Officer Mira Murati has
announced her exit, as well as Chief Research Officer Bob McGrew and Vice President of Research Barret Zoph.
Bottom line: With President Greg Brockman on an extended leave, only two of OpenAI's 11 founders remain with the company. The ChatGPT creator is also
in the process of raising additional funds that would value the firm at $150B. Questions remain over whether prioritizing revenue could compromise the management of long-term AI risks, or if it's only a matter of time before corporate rivals catch up and by being the leader they can set the tone on responsibility and governance for the emerging industry. (
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