Elon Musk, CEO of Tesla, voiced strong disapproval over reports that OpenAI, the company behind ChatGPT, may be planning a shift from its original non-profit structure to a profit-driven model. According to Musk, this kind of transformation could be in violation of legal standards.
His reaction came Thursday in response to reports that OpenAI is considering a restructuring to become a for-profit benefit corporation. Musk reportedly commented on X that converting a non-profit into a for-profit entity would be illegal.
In the midst of these developments, there is speculation that Sam Altman, OpenAI’s CEO, might receive a 7% ownership stake under the proposed restructuring. It’s worth noting that Musk, who was one of OpenAI’s co-founders, parted ways with the company back in 2018.
Although OpenAI’s non-profit foundation will continue to operate and hold a minority stake in the new for-profit structure, this move could open doors for greater investment opportunities and may influence how the organization handles AI risk management under a new governance framework.
Initially established in 2015 as a non-profit AI research organization, OpenAI expanded its structure in 2019 by creating the for-profit OpenAI LP. This subsidiary has played a key role in attracting capital from Microsoft to fund further advancements in AI research.
As part of the restructuring plan, CEO Sam Altman is also expected to receive equity in the for-profit entity, which could potentially be valued at $150 billion. The changes are also aimed at lifting the cap on investor returns.
An OpenAI spokesperson emphasized that the organization’s commitment to developing AI for the benefit of all remains unchanged, adding that the non-profit branch will continue to play a crucial role in fulfilling the company’s mission.
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