OpenAI is trying to keep up its whole move-fast-and-break-things shtick without completely abandoning its safety-first roots.
What happened: The AI startup finalized a restructuring deal that will split the organization into separate non-profit and for-profit wings. The non-profit, which will be renamed the OpenAI Foundation, will hold a controlling stake in the profit-focused arm of the business, OpenAI Group.
- As part of the restructuring, Microsoft will receive a 27% stake in OpenAI’s for-profit division worth about US$135 billion (not a bad return on its $13 billion investment).
- OpenAI says the profit structure incentivizes public-benefit initiatives. The more valuable the for-profit arm becomes, the more money the OpenAI Foundation will get to fund philanthropic efforts, like accelerating healthcare breakthroughs.
Why it’s happening: Even with the non-profit arm taking a controlling stake, the restructuring gives OpenAI Group the freedom to file for an IPO, acquire other companies, and operate its business like the $500 billion commercial juggernaut it is.
- The startup faced backlash when it eliminated its long-term safety team last year after several high-profile team members departed over safety-related concerns.
Why it matters: The breakneck speed of the AI race doesn’t necessarily lend itself well to safety guardrails. In a fight to stay atop one of the most competitive and capital-intensive industries in the world, OpenAI isn’t going to handcuff itself by prioritizing its original do-good mission.—LA