AI Firm OpenAI Contemplates Full-Profit Model Amidst Leadership Reshuffle and Criticism
Summary:
AI company OpenAI is contemplating a transition from a profit-restricted entity to a fully profit-driven business, a proposition revealed by CEO Sam Altman to shareholders. OpenAI, which merges a non-profit and a profit-capped segment, adopted the existing system to stimulate research into artificial general intelligence (AGI). A restructuring of the board of directors and the inclusion of newly selected stakeholders are among recent organizational changes. The move, however, has been met with criticism, notably from former U.S. intelligence contractor, Edward Snowden.
Reports have surfaced that OpenAI, a company specializing in artificial intelligence (AI), is mulling over a transition from a profit-capped entity to a fully profit-oriented business. The Information initially reported that the CEO and founder, Sam Altman, disclosed the potential change to shareholders in the week of June 10. This modification could theoretically strip the non-profit board of OpenAI of its command over the firm. OpenAI, with an estimated private valuation of around $86 billion, currently operates as a hybrid of a non-profit and a profit-restricted segment, as per its official website. The company shifted to the profit-capped model to spur research in artificial general intelligence (AGI), simultaneously upholding its original vision. OpenAI purported that the donations necessary to carry out their operations weren't sufficient, necessitating a new approach to bring in revenue and motivate stakeholders. Despite this, the site emphasizes investors seeing their funding as donations, warning of substantial financial risk. Sam Altman, the CEO, has restructured the board by incorporating new, personally selected stakeholders, prompting the restructuring. The people who have joined the board include Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation, former Sony VP Nicole Seligman, Instacart’s CEO and Chair Fidji Simo, and Paul Nakasone, a retired Army General and ex-director of the National Security Agency. Edward Snowden, a former U.S. intelligence contractor, criticized Nakasone's appointment, cautioning the public against OpenAI and its outputs, particularly ChatGPT. He insinuated the move was a deliberate violation of every individual's rights across the globe.
Published At
6/15/2024 7:20:47 PM
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