Investments are donations: OpenAI wants to become profit-oriented

Investing in OpenAI is associated with a high level of risk, the OpenAI website states in black and pink. Investors could lose all their money and should consider their investment as a donation. At the same time, the start-up obviously wants to change its own structure to that of a profit-oriented company. This could attract investors.

Actually, we don't know OpenAI to be particularly humble. The wording is therefore surprising – but only at first. The reason for the warning is not that OpenAI might not make a profit or even fail. The explanation as to why the investments might not be repaid is that they do not know what role money will play in a world in which there is Artificial General Intelligence (AGI). This ultimate goal should benefit humanity as a whole and all money will be invested in the associated research.

OpenAI for profit instead of charity

Meanwhile, OpenAI CEO Sam Altman is fuelling rumors that the structure of the company is to be changed. Currently, OpenAI Inc. is a non-profit organization. It oversees the company's research and direction. Under it is OpenAI LP, a for-profit subsidiary through which investments are raised. For the donors, however, the overarching structure means that they can only receive a certain return. The surplus automatically goes to the non-profit organization. Mozilla, for example, has a similar structure.

According to The Information, Altman had already spoken at a staff meeting in June that OpenAI was considering changing its structure. He is now reported to have said again at such a meeting that OpenAI will change its complex non-profit structure in the coming year, reports Fortune. The structure has been outgrown. It was originally introduced because "AI is not a normal technology".

When asked about the plans, a spokeswoman for OpenAI told Fortune: "We remain focused on developing AI that benefits everyone, and we are working with our board to ensure we are best positioned to succeed in our mission. The non-profit organization is at the heart of our mission and will continue to exist."

A change has been expected by many observers since Sam Altman was forced out at short notice last fall. Even then, the focus of the company and the security of developments were said to be at stake.

It is questionable whether the non-profit status also plays a role in the fact that OpenAI invokes the principle of "fair use". This allows certain exceptions if they serve the common good. In this case, for example, the use of copyrighted works for training the AI models – says at least OpenAI – because the models benefit the general public. Whether this argument holds up has not yet been conclusively clarified.

(emw)