OpenAI plans to become a for-profit business — here’s what that means for the AI company | Mashable.

OpenAI plans to become a for-profit business — here’s what that means for the AI company

In addition, CTO Mira Murati and two other executives also just announced that they're leaving the company.

By Matthews Martins on September 26, 2024

OpenAI is looking to take control from its non-profit in order to focus on the for-profit side of the organization. Credit: OLIVIER DOULIERY/AFP via Getty Images

OpenAI doesn't want to be so open anymore.

According to a new report, OpenAI — the organization that burst onto the scene with the release of its popular AI chatbot, ChatGPT, in 2022 — is looking to restructure into a for-profit company.

Much to the chagrin of its biggest critics, like former investor Elon Musk, OpenAI has been slowly moving away from the non-profit ethos it was initially founded on. OpenAI was originally founded in 2015 as a non-profit organization. In 2019, a for-profit subsidiary of the non-profit was set up, and the organization has been headed in that direction ever since. 

SEE ALSO: OpenAI is reportedly going all-in as a for-profit company

OpenAI is now looking to make its evolution into a for-profit company complete by shedding the non-profit board that controls it.

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OpenAI looks to shed non-profit's power

In its current state, a non-profit organization sits atop OpenAI's business operations and controls the for-profit business' operations. This was set up in an attempt to keep true to part of OpenAI's original mission of ensuring a "safe AGI that is broadly beneficial." Potential dangers with AI, namely AI that surpasses its human creators, had once been a concern at the forefront of the organization. 

Late last year, the board's role and those concerns were thrust into the headlines after the non-profit board fired OpenAI CEO Sam Altman, setting off a chain of events that eventually landed Altman back at the head of the company. Altman was accused by some of his peers of putting AI safety issues aside in order to focus on growth at the for-profit company.

SEE ALSO: OpenAI Strawberry might release sooner than expected. Everything we know so far.

Investors, such as companies like Microsoft, have put billions of dollars into OpenAI. Even with these big investments, as OpenAI critic Ed Zitron recently pointed out, OpenAI is on track to lose billions this year. As these Big Tech companies seek returns on their investments, it seems inevitable that OpenAI will continue to focus on its profit motives. But, to fully do that, the non-profit board has to go – and it appears Altman is in the midst of doing that.

On Wednesday, the same day this report was published, OpenAI's CTO Mira Murati announced she was leaving the company. Shortly after Murati's announcement, OpenAI’s chief research officer Bob McGrew and VP of research Barret Zoph both announced their intention to leave the organization as well.

OpenAI appears to be undergoing big change as the organization restructures everything from how the company operates to its executive offices. While OpenAI says its non-profit will continue to exist, it will only own a minority stake in the for-profit company. OpenAI will seemingly take more risks in order to turn a profit, operating more so as a standard tech startup than before. But, it's unclear whether those risks will solve the for-profit company's financial issues or leave a net positive impact on society as a whole.

Topics  Artificial Intelligence OpenAI