Labor and nonprofit coalition calls on California agriculture to stop Openai from making profits
A group of organizations, including Latino Experience and nonprofits such as labor groups such as the California Team, are asking California Attorney General Rob Bonta to prevent Openai from becoming a for-profit entity, this Los Angeles Times Report. Openai announced plans to transition to Public Ford in 2024, with two years reportedly rolling out it or risking most of the funds raised to become debt.
The organization’s main focus is Openai’s “failure to protect its charitable assets” and actively “suppress its charitable mission to promote secure artificial intelligence”. OpenAI was originally a nonprofit research organization that is studying AI, but has moved to a for-profit company that was supervised and operated by a nonprofit organization in 2019.
The structure is permitted in California law, but the group’s petition claims that Openai’s decision to pursue a new structure is driven by a desire not to further advance its mission, but rather provides “the welfare of AI – the potential profit and control of a company that can become a strong world-changing world-wide investor and senior investor and senior employee.”
Engadget has arrived at AG Bonta comments on the petition and will update this article if we hear back.
“Our board is very clear that we intend to strengthen nonprofits so that their mission can be achieved over the long term. We don’t sell it, we are doubling down on our work,” Openai told Engadget. “As the advisory committee we recently formed announced, we look forward to the opinions and advice of experienced leaders in how community organizations can help them achieve their mission.”
The main reason for Openai’s for-profit is to raise more funds. At present, nothing can stop Openai from convincing more people to invest, but as Engadget reported in February, it can provide investors with limited returns for investors. As a for-profit company, it will not be subject to these restrictions, nor will it pay attention to the requirements of the non-profit committee that focuses on the company’s risk breakthrough rather than its practicality as a consumer product.
Over the years, Openai’s board of directors has tried to dominate for profit, such as launching Sam Altman in 2023, before he was rehired, and the board is filled with new members more friendly to OpenAI’s for-profit goals. The organization behind the petition believes that such an action is sufficient to allow AG to step in to protect the public’s interests.
The petition joins other attempts to stop Openai’s conversion, just like Meta’s letter to Bonta, claiming that Openai’s transition to for-profit would be “breach of the law” while Elon Musk attempts to buy the company.
Updated 8:24 ET: Added Openai’s comment.
