It has been reported that the artificial intelligence (AI) company OpenAI is contemplating a shift from a capped-profit corporation to an unrestricted for-profit model. According to The Information, CEO and co-founder Sam Altman mentioned to shareholders that this shift was under consideration during the week of June 10. If this transformation occurs, OpenAI’s nonprofit board may lose control of the company.
Currently, OpenAI is valued at around $86 billion privately. The company’s website describes its current structure as “a partnership between our original Nonprofit and a new capped profit arm.” The transition to a “capped profit” model was intended to encourage research in artificial general intelligence (AGI) while upholding the company’s vision. OpenAI explained that the donations they received were insufficient for their work, prompting the need for a new cash infusion model to incentivize stakeholders.
Despite this potential shift, the website still emphasizes that stakeholders should view their investments as donations. The reported restructuring coincides with CEO Sam Altman appointing new board members, including Sue Desmond-Hellmann, Nicole Seligman, Fidji Simo, and Paul Nakasone.
The addition of retired U.S. Army general Paul Nakasone to the board triggered a strong response from Edward Snowden, a former U.S. intelligence contractor. Snowden cautioned against trusting OpenAI and its products, specifically mentioning ChatGPT, and raised concerns about the implications of appointing an @NSAGov Director to the board. He concluded with a stark warning about the appointment being a betrayal of the rights of every individual on Earth.
