Amid lawsuit by Musk, OpenAI dials back conversion plan and nonprofit to retain control
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A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. — Reuters
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A major reorganization project by the Open has been dial with control with its unprofitable parents in the move, which is likely to limit the power of CEO Sam Altman’s Chatman’s key GPT maker.
After the announcement, a storm of criticism and legal challenges, including a high -level case filed by rival and co -founder Elon Musk, who has accused the openness of its founding mission to promote artificial intelligence for the benefit of humanity.
In a blog post on Monday, “Open AI was established as a non -profit, today a non -profit that monitors and controls profitable, and moving forward will be a non -profit that monitors and controls it. It will not change.”
The Openy outlined plans to convert its lucrative arm into a public beneficial corporation in December, a structure that is designed to balance the shareholder’s withdrawal with social goals, unlike non -profit, who are completely public. Under this proposal, non -profit parents would have been a huge shareholder in the PBC but control the startup.
On Monday, the Open said that the non -profit parents would control the PBC and would have a major shareholder. The company will move forward with plans to replace its lucrative arm structures to maintain speed in the AI race to raise more capital.
The purpose of a lucrative profitability was to help Openi increase more capital and easily restrictions related to his non -profit parents. But it raised concerns about whether the company would unprecedentedly allocate assets fairly and how it would balance making a profit with its mission to prepare AI for the good of the public.
Openi Board Chairman Brett Taylor said in a blog post, “We have decided to be under control after listening to urban leaders for non -profit people and talking to the offices of California and Delware’s Attorney General,” said Breit Taylor, the new board, in a new post.
The opposite called the move a compromise “, which works enough for investors that they are happy to keep us funding at the degree that we think we will need.” He said that to finalize the latest project, Microsoft will work with major regulators and newly appointed non -profit commissioners, and decide how much equity shares will get in a profitable business.
“We believe that we need to be able to raise funds,” said the Altman.
But the questions remain exactly what is changing, and the level of non -profit will be overcome under a new proposed project, which lacks details. Currently, the opening unprofessional profitable company is fully owned, and the mission of the non -profit board is ensuring that “artificial general intelligence benefits all humanity,” instead of providing prices to the shareholders.
“We are happy that the open civil society leaders are listening to the concerns … but the important questions remain,” the former open policy and ethics adviser, and the lead organizer of the group did not ask for private benefits.
“Will Openi’s trade goals be legally under his charitable mission? Which technology will be owned for the development of Openi? The 2019 reorganization announcement made the mission’s priority very clear, but so far, these statements are not,” he said. He added that he was concerned that in the PBC structure, the board would be bound to the maximum share of shareholders.
Canstery suit to move forward
Artificial general intelligence, or AI, as an expensive pursuit of human intelligence, wants to make changes to attract more investment.
It announced in March that a new funding round led by the Soft Bank Group would increase $ 40 billion, costing $ 300 billion. The round was a competition for the AI firm for a profitable transfer by the end of the year, a structure that drew attention during the biggest boardroom plays in the Silicon Valley in November 2023, where members of the non -profit board overthrew communication and confidence in defects and losses. It was restored after five days after the support of employees and investors.
The Japanese tech will be able to get funds from the Investor after the Openi Monday’s move, Ultman said.
The Softbank did not immediately respond to the comments request, while Microsoft refused to comment.
The announcement also came in the midst of a bitter legal battle brought by Open co -founder Elon Musk, who tried to remove the transfer of the open from the non -profit control, other than other claims. The jury trial was scheduled in March 2026.
Musk’s lawyer said there was no plan to quit the case against the open.
“This announcement has blurred important details about the ‘non -profit control’ arrangements, and will especially receive the sharp -owned shares in the profitable enterprise of the non -profit reversal, where the non -profit currently holds the majority.”
A consortium, led by Musk, also made an unprecedented .497.4 billion bid for the open earlier this year, which was rapidly complained by the Altman with “nine thanks”.
