OpenAI to remain a non-profit organization for now

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OpenAI has decided not to shift full control to its for-profit arm as previously planned. Instead, it announced that its original non-profit organization will continue to be in charge. 

This decision comes after feedback from community leaders and talks with legal authorities in California and Delaware.

OpenAI’s CEO, Sam Altman, and chair of its non-profit board, Bret Taylor, shared that the choice was made to protect the company’s core mission. 

While OpenAI does have a for-profit division that has attracted billions in funding, it will now become a “public benefit corporation.” 

This means the company can still make money but must also stay true to its stated purpose, developing AI in a way that benefits humanity. 

The non-profit will continue to hold significant influence over the for-profit side as a major shareholder.

OpenAI began nearly ten years ago as a non-profit research lab founded by Sam Altman and Elon Musk, with the goal of creating advanced AI that helps, not harms, people. 

Over time, the company grew massively in value and popularity, now reportedly worth $300 billion, with over 400 million users using ChatGPT each week.

However, OpenAI’s path to restructuring hasn’t been smooth. Elon Musk, once a supporter, is now suing the company and Sam Altman, claiming they’ve strayed from their original mission. 

Elon Musk argues that OpenAI has turned into a money-driven business rather than a charitable organization. 

In response, OpenAI says Elon Musk is upset because he left and started his own AI company, xAI, which now owns the social media platform X (Twitter).

In simple terms, OpenAI is sticking to its roots as a mission-driven organization, even as it continues to grow and make money. 

It wants to assure the public that it will prioritize ethical AI development while still having the ability to raise funds and innovate.

Got any thoughts on OpenAI staying a non-profit? What direction do you expect the company to take in the future? We want to hear your thoughts below in the comments, or via our Twitter or Facebook.