A coalition of organizations, including labor groups like the California Teamsters and nonprofits such as LatinoProsperity, is urging California Attorney General Rob Bonta to intervene and stop OpenAI from shifting to a for-profit model. According to The Los Angeles Times, OpenAI announced its intention to become a public-benefit corporation in 2024, with a two-year deadline to complete the transition.
The coalition fears this move signals a departure from OpenAI’s original mission of developing safe artificial intelligence and raises concerns about the protection of its charitable assets.
Originally founded as a nonprofit research entity, OpenAI has evolved into a model that combines for-profit operations overseen by a nonprofit since 2019. While California law permits this structure, the coalition argues that the pursuit of a fully for-profit model aligns more closely with maximizing profits for a select group of investors and high-level executives rather than advancing the broader societal benefits of AI technology.
OpenAI has responded to the growing concerns by stating its commitment to strengthening its nonprofit arm to achieve its mission effectively. The organization asserts that transitioning to a for-profit model is essential for raising necessary funds, allowing for greater investment opportunities without the current limitations placed by its nonprofit status. They emphasize their intent to maintain focus on the nonprofit’s goals despite the structural change.
The petition against OpenAI’s transformation adds to previous disputes, including a letter from Meta alleging legal violations and Elon Musk’s interest in acquiring the company. As this situation unfolds, observers await AG Bonta’s response to the coalition’s concerns and potential actions to protect public interests regarding AI development.
