OpenAI, the organization behind ChatGPT and supported by Microsoft, is reportedly developing a strategy to transform its core operations into a for-profit benefit corporation, which would operate independently of its current non-profit board.
According to various media outlets, while the non-profit arm of OpenAI will remain in existence, it will hold only a minority stake in the newly formed for-profit entity. This restructuring marks a pivotal change in OpenAI’s governance and business model.
The news has sparked backlash from Elon Musk, a co-founder of OpenAI who has been vocal about his disapproval of the proposed changes. Musk took to social media platform X to express his concerns, stating, “You can’t just convert a non-profit into a for-profit. That is illegal,” in response to inquiries about OpenAI’s restructuring plans.
This development follows Musk’s recent legal action against OpenAI, where he alleges that the organization has deviated from its foundational mission to create artificial intelligence primarily for the benefit of humanity, rather than for profit. His lawsuit claims a breach of contract, asserting that when he co-founded the company in 2015, it was intended to be an open-source, non-profit venture, a vision he believes has since been abandoned.
As OpenAI moves forward with its plans, the implications of this restructuring on its mission and operations remain to be seen, especially amid Musk’s ongoing legal challenges and public criticisms.
