What's behind OpenAI's potential governance shift
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Illustration: Natalie Peeples/Axios
It turns out that OpenAI's status as a nonprofit might've been the most artificial thing about it.
Why it matters: A potential plan to move the generative-AI pioneer into the control of a fully independent for-profit outfit would remove any uncertainty over whether financial motivations are at the core of the ChatGPT maker's ambitions.
Catch up fast: The company's board is weighing the controversial moves as OpenAI tries to close a massive new investment round, but neither the governance changes nor the funding have been finalized, Axios' Ina Fried and Scott Rosenberg reported Wednesday.
- The board is also considering whether to award equity to OpenAI CEO Sam Altman, who does not now have a stake in it.
Between the lines: Without nonprofit oversight — which was originally established to ensure OpenAI's products benefited humanity — the company will be "more attractive to investors," Reuters reported.
- It's currently raising about $6.5 billion at a $150 billion pre-money valuation, Axios' Dan Primack reported last week.
What they're saying: An OpenAI spokesperson told Ina and Scott yesterday that the nonprofit "is core to our mission and will continue to exist."
- The WSJ reports that the company would become a public-benefit corporation, "meaning its mission is to create social good and operate in a sustainable manner."
💭 Nathan's thought bubble: The issue here is the cultural divide between what Silicon Valley believes is good for humanity and what AI watchdogs believe is potentially problematic.
The other side: Elon Musk, who co-founded and partially funded OpenAI before splitting with its leaders, ripped Altman, comparing him to a manipulative character from "Game of Thrones."
