Sam Altman Says OpenAI Could Become For-Profit

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PUBLISHED Jun 17, 2024UPDATED Jun 18

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The Facts

The Information has reported that OpenAI Chief Executive Officer Sam Altman told shareholders that the artificial intelligence (AI) developer could change its governance structure to a for-profit corporation that its nonprofit board would no longer control.
In addition, Altman has reportedly said that the transition could set the stage for an eventual initial public offering (IPO) for the for-profit company, which will be similar to rivals Anthropic and xAI.

The Spin

Narrative A

OpenAI was created as a nonprofit research organization committed to advancing digital intelligence for the good of humanity. Yet, the company has grown entirely unrecognizable. This report indicates a move to confirm what is already known — OpenAI is a for-profit organization.

OpenAI Is Now Everything It Promised Not to Be: Corporate, Closed-Source, and For-Profit

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Narrative B

Nonprofits sound more virtuous, but for-profit organizations can be more responsible due to their exposure to competitive pressures, as they must benefit customers and investors. That said, it's great news that OpenAI may be moving toward becoming a for-profit benefit corporation.

OpenAI Is Now Unambiguously Profit-Driven, And That’s A Good Thing

ForbesDec 09, 2023