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According to the report, OpenAI is engaged in a corporate restructuring plan that would remove control from the ChatGPT creator's nonprofit board and transform the organization into a primarily for-profit organization. From Reuters.
The plan includes giving CEO Sam Altman a stake in the Microsoft-backed artificial intelligence startup for the first time, the outlet reported, citing three anonymous sources. .
Sam Altman, CEO of OpenAI, speaks at the Microsoft Build event in Seattle on May 21, 2024. (Chona Kassinger/Bloomberg via Getty Images)
OpenAI did not deny the report when contacted by FOX Business on Thursday.
“We remain focused on building AI that benefits everyone, and as we have previously shared, we are working with our Board of Directors to ensure we are best positioned to achieve our mission.” We are cooperating,” a spokesperson said in a statement. “This nonprofit is core to our mission and will always be.”
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Reuters said OpenAI could be worth $150 billion if it goes through a restructuring that would increase its profit cap.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| MSFT | Microsoft Corporation | 431.04 | -1.07 |
-0.25% |
Reports of a possible reorganization at OpenAI emerged on Wednesday as three more executives, including chief technology officer Mira Murati, announced their resignations and a new leadership shakeup occurred within the organization.
Mira Murati announced Wednesday that she is stepping down from her role as OpenAI's chief technology officer. (Patrick T. Fallon/AFP via Getty Images/File)
Speaking at Italian Tech Week on Thursday morning, Altman insisted that his resignation was unrelated to the restructuring negotiations, but acknowledged that the organization was changing and said, “I hope this is a great transition for everyone involved.'' I hope that will happen, and I have high expectations for OpenAI.” We will be stronger for it, as we are for all transitions. ”
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Elon, the tech billionaire who co-founded OpenAI in 2015 and is currently suing the organization and Altman for violating its founding mission to develop open source artificial general intelligence technology for the benefit of humanity. Musk said on X that OpenAI's restructuring plan is “illegal.” “You can’t just turn a nonprofit into a for-profit organization,” he writes.
Elon Musk, technology entrepreneur and Tesla CEO (Chesnot/Getty Images/File)
Attorney Jamie E. Wright, founder of the Wright Law Firm in Los Angeles, told FOX Business that while OpenAI's reported restructuring plans are not illegal, they are not without risks, and the move will certainly raise concerns. Ta.
“When a nonprofit organization transitions to a for-profit organization with a commercial opportunity like OpenAI, it's important that it doesn't just benefit a privileged few,” Wright said. “If OpenAI receives donations or public support due to its for-profit designation, the reorganization could presently lead to legal disputes regarding the allocation of those funds.”
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She said concerns about legality likely stem from the operation of the area.
“If OpenAI doesn't address this issue correctly, it could be accused of exploiting the profit situation for profit, which could lead to potential legal tangles,” Wright said. . “Therefore, even if the restructuring is not illegal, great efforts must be made to avoid entering into a controversial situation and facing public backlash.”
