To Further Its Mission of Benefitting Everyone, OpenAI Will Become Fully for-Profit

According to OpenAI, the only thing you need to know about OpenAI is that its sole mission is to solve “the most pressing challenges of our time” to benefit all of humanity and the world as a whole.

The company said in a notification that it will continue announcement Friday, even as it restructured itself from a corporation controlled by a nonprofit to a stand-alone corporation that dumped a lot of money into an affiliated nonprofit.

How does this restructuring help OpenAI fulfill its mission to benefit all humans and non-humans? Well, it’s simple. OpenAI’s “current structure does not allow the board to directly consider the interests of those who will fund the mission.” Under the new structure, OpenAI’s leadership will finally be able to raise more money and focus on the needs of billionaire investors and trillion-dollar tech companies. Voila, everyone benefits.

The press release didn’t mention that a year ago the nonprofit board that oversees OpenAI tried unsuccessfully to boot CEO Sam Altman. “totally false” In ways that, according to former board member Helen Toner, made it difficult for boards to ensure the company’s “mission for the good of the people was primary, coming first—over profits, investor interests, and so on.”

With its new structure, OpenAI intends to maintain at least a facade of altruism. The for-profit company will be incorporated as a Delaware public benefit corporation, which means that the company’s actions can consider how the company’s actions affect stakeholders in addition to its fiduciary duty to shareholders (corporate law experts indicated that ordinary corporations are also perfectly free to do so).

Other publicly traded Delaware public benefit corporations include Laureate Education, which operates a string of for-profit universities around the world, one of which was multiple times to mislead students about the cost of its degree programs (Walden University was sold before the university disposal a class action lawsuit earlier this year for $28.5 million). Another is Lemonade Inc., an insurance company that Once advertisedand Quick Apology, an AI feature that claims to be able to identify fraudulent customers by analyzing their faces.

mixed with all effective accelerator OpenAI’s announcement is a relief, a clear message that the fledgling company plans to raise a ton more money to further its drive toward artificial general intelligence (AGI). According to reporting from InformationOpenAI and Microsoft define AGI as systems that can generate at least $100 billion in revenue. You know, traits of intelligence.

What will happen to the nonprofit currently overseen by the company is less clear, though it certainly won’t be pinching pennies. It wasn’t a very traditional nonprofit, which quickly churned through $137 million in donated cash from Elon Musk and other tech moguls, and more than $100 million in free computing from Google, Microsoft and others. AI systems that now benefit profitable corporations

After the corporate transition is complete, OpenAI will have no oversight of the nonprofit organization but will receive shares in the new for-profit company and will be “one of the best-run nonprofits in history,” according to OpenAI’s press release. The exemption will allow it to “pursue charitable initiatives in sectors such as health care, education and science.”

Needless to say, it won’t be long before we all start benefiting from its charity.