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Freeman [soylentnews.org] writes:

https://arstechnica.com/information-technology/2024/09/openai-plans-tectonic-shift-from-nonprofit-to-for-profit-giving-altman-equity/ [arstechnica.com]

On Wednesday, Reuters reported [reuters.com] that OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation, moving away from control by its nonprofit board. The shift marks a dramatic change for the AI company behind ChatGPT [arstechnica.com], potentially making it more attractive to investors while raising questions about its commitment to sharing the benefits of advanced AI with "all of humanity," as written in its charter [openai.com].

A for-profit benefit corporation [wikipedia.org] is a legal structure that allows companies to pursue both financial profits and social or environmental goals, ostensibly balancing shareholder interests with a broader mission to benefit society. It's an approach taken by some of OpenAI's competitors, such as Anthropic and Elon Musk's xAI.
[...]
Bloomberg reports [bloomberg.com] that OpenAI is discussing giving Altman a 7 percent stake, though the exact details are still under negotiation. This represents a departure from Altman's previous stance of not taking equity in the company, which he had maintained was in line with OpenAI's mission to benefit humanity rather than individuals.
[...]
The proposed restructuring also aims to remove the cap on returns for investors, potentially making OpenAI more appealing to venture capitalists and other financial backers. Microsoft, which has invested billions [arstechnica.com] in OpenAI, stands to benefit from this change, as it could see increased returns on its investment if OpenAI's value continues to rise.

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