Recently, several groups, including the Latino Prosperity Organization and the California Trucking Association, submitted a petition to California Attorney General Rob Bonta, urging him to halt OpenAI's transition to a for-profit company.

Initially founded as a non-profit artificial intelligence research institution, OpenAI transitioned to a for-profit company managed by a non-profit organization in 2019. OpenAI plans to become a public benefit corporation starting in 2024, with a two-year timeframe to achieve this or risk a significant portion of its funding converting to debt.

OpenAI

Image Source Note: Image generated by AI, licensed through Midjourney

The petition alleges that OpenAI has "failed to protect its charitable assets" during this transition and is "intentionally undermining its charitable mission of promoting safe AI." While California law permits this organizational structure, the petitioners argue that OpenAI's motives are not aligned with its original purpose, expressing concern that the "benefits of AI" are being diverted to a select few corporate investors and top employees.

OpenAI's primary reason for transitioning to a for-profit model is to raise more capital. As a for-profit entity, OpenAI is no longer bound by the constraints of a non-profit board, which prioritizes the risks associated with technological breakthroughs over consumer value. Furthermore, OpenAI's board has grappled with limiting the impact of profit goals for years. For instance, in 2023, OpenAI CEO Sam Altman was briefly ousted from the board but quickly reinstated, with board members replaced by individuals more supportive of profit-driven objectives. The petitioners believe these actions provide ample grounds for the Attorney General to intervene and protect the public interest.

OpenAI's move to become a for-profit company has sparked widespread concern. The petitioners' actions highlight lingering anxieties about the monetization strategies of tech companies and their potential societal impact.

Key Points:

🌐 Multiple California groups have jointly petitioned to prevent OpenAI's transition to a for-profit company.

💰 OpenAI's main reason for transitioning is to raise more capital to address the risks associated with technological advancements.

📉 The petition accuses OpenAI of failing to protect its charitable assets, thereby undermining its mission to promote safe AI.