Report: OpenAI Becoming For-Profit, Giving Altman a Stake
Reuters has claimed that OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is planning to shift from its current nonprofit status to a for-profit company. Chief Executive Officer Sam Altman, who previously said he wouldn't take a financial share, will reportedly now receive equ...
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Facts
- Reuters has claimed that OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is planning to shift from its current nonprofit status to a for-profit company. Chief Executive Officer Sam Altman, who previously said he wouldn't take a financial share, will reportedly now receive equity.[1]
- While the nonprofit side will maintain a minority stake in the company, the for-profit change is reportedly expected to entice new investors, including Apple, Nvidia, and the UAE-backed firm MGX.[2][3]
- This means the current cap on returns for investors will be abolished. If the restructuring doesn't happen within two years, investors can request their money back.[4][3]
- OpenAI's original philosophy was to create 'safe AGI [artificial general intelligence] that is broadly beneficial.' The company has since abolished its AI safety-focused team, added tech executives to its board, and lost many longtime members — most recently two research officers and its chief technology officer.[1][5]
- Investors such as Microsoft have put billions of dollars into OpenAI, which was valued at $86B earlier this year before new fundraising talks this month put estimates at $150B.[2]
- This comes as Altman predicts AI 'superintelligence,' which would be smarter than any human and be able to improve itself, is 'a few thousand days' away. He and other tech leaders also proposed to US Pres. Joe Biden this week the creation of five gigawatt data centers, which are large enough to power 3M homes.[6][7][8]
Sources: [1]Reuters, [2]BNN Bloomberg, [3]Wsj, [4]Engadget, [5]New York Times, [6]New York Post, [7]Samaltman and [8]FOX News.
Narratives
- Narrative A, as provided by Barrons. OpenAI has already changed the world for the better, which is why its nonprofit arm will remain a crucial part of the new corporation. However, to accomplish the technological pursuits required to further benefit humanity, the company will need enough financial backing, and thus seek business partnerships with tech powerhouses like Apple.
- Narrative B, as provided by Atlantic. While Altman publicly claims that this move is to further OpenAI's initial nonprofit mission, privately he's been pushing the organization away from its altruistic philosophy for some time. This is why founding members and other longtime employees have been leaving in droves — including top scientists. Those on the inside have seen this coming for a while.
