Openai said Monday that it has been restructured as a public benefits company and will allow the nonprofit that manages Openai to maintain the company's grip.
The nonprofit will become OpenAI's largest shareholder.
Openai CEO Sam Altman created several other Silicon Valley person organizations in late 2015, including Elon Musk. In 2018, after Musk left the Power struggle, Altman attached Openai to a commercial company, allowing him to raise the billions of dollars needed to build AI Technologies.
However, the nonprofits were aware of what would become an unorthodox structure that some viewed as aromatoids in the company's growth. Last year, Altman and his company began working on plans to shift control from a nonprofit to Openai investors.
However, the company was betrayed by its plans and nonprofits and now remains in control. The decision was a victory for Openai critics, including Musk, who said the company was so focused on profits that it abandoned its early plans to build an AI system with the greatest safety.
Public benefit corporations are often described as organizations designed to create public and social benefits, allowing outsiders to invest in roughly the same ways they invest in other companies.
“We are extremely pleased that the nonprofit has made a decision to maintain control,” Altman said at a press conference. He added that the new change “sets us to have a more understandable structure to do what a company like us has to do.”
Openai said it is still negotiating the nonprofit's shares in the new company, and that the nonprofit will select board members for the new company.
Japanese conglomerate SoftBank has recently led a $40 billion funding round in Open Eye, valued the $300 billion company. If this shift is not completed by the end of the year, SoftBank has the option of reducing its total contribution to $20 billion if anyone familiar with the latest investment transactions.
This is a developing story. Please check for updates.
