penAI is creating a restructuring plan that can go as deep as changing the business core from a non-profit into a for-profit benefit corporation.
This will also imply that the board will no longer be controlled by the non-profit one, this move making the company more attractive to investors.
However, sources told Reuters that the non-profit will still exist as a smaller part of the for-profit company. But, this shift can also come with bigger risks in the risk-handling sector as a new governance structure is to be created.
With those changes, Sam Altman, the chief executive of OpenAI can also receive equity for the first time as the company switches to a for-profit structure. Reuters source talked about these possible changes, stating “We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist,".
The details of the possible restructuring lead to major governance changes that happen behind the scenes at one of the biggest companies working and developing artificial intelligence from the market. Those possible changes are still under discussion with the lawyers and shareholders even more so, the timeline remains unclear.
Subscribe to our newsletter
Important executives announced their leave from the company, Mira Murati, the Chief Technology Officer, Greg Brockman, the company’s president and research and Officer Bob McGrew announced that they will no longer be working at OpenAI.
OpenAI's new structure will give full control to the for-profit subsidiary, which originally started as a non-profit company. The idea of a for-profit change came into play last November when members of the non-profit board ousted Altman which led to the loss of trust and his reinstatement in the position after 5 days.
Even more so, this change can also lead to a less secure environment for the development of artificial intelligence safety measures as the superalignment for long-term AI risks has been dissolved this year.
By
Bill O'Neill
•
September 26, 2024 2:10 PM
.webp)
.webp)
