OpenAI Announces Cancellation of Plans to Transition to a For-Profit Organization. This Decision Comes After the Company Received Significant Criticism.
OpenAI, the Company Behind ChatGPT, Abandons Its Plans to Transition from a Complex Non-Profit Structure to a More Conventional For-Profit Company. Last Year, Sam Altman Announced the Transformation, but It Was Met with Criticism. Elon Musk Attempted to Obstruct the Transition but Could Not Gather Sufficient Evidence to Support His Case.
Resistance
Last Year, OpenAI Announced Its Plans to Transition from Non-Profit to For-Profit by 2025. The Company Stated Then That It Wanted to Move Away from Its Current Complex Structure, Where a Non-Profit Organization Oversees a Profitable Branch, a Holding Company, and Another Profitable Entity.
This Plan Was Met with Significant Criticism. Elon Musk Wanted to Obstruct the Transformation Because He Believed OpenAI Was Developing Its AI for Profit Rather Than for the Benefit of Society. Due to Lack of Evidence, the Judge Dismissed His Objection.
Change in company structure
Now OpenAI Seems to Be Abandoning Its Plans “After Hearing from Community Leaders and Engaging in Constructive Dialogue with the Offices of the Attorney General of Delaware and California,” According to the Company in a Blog Post.
Nevertheless, OpenAI’s CEO Is Adjusting the Company Structure. “The For-Profit LLC Under the Non-Profit Organization Will Transition to a Public Benefit Corporation (PBC) with the Same Mission,” Altman Explains. “Instead of Our Current Complex Structure with Captured Profits – Which Made Sense When It Seemed There Could Be One Dominant AGI Effort, but Not in a World of Many Large AGI Companies – We’re Moving to a Normal Capital Structure Where Everyone Has Shares. This Is Not a Sale, but a Change of Structure to Something Simpler.”