OpenAI, the company behind ChatGPT, is transitioning to a for-profit structure while addressing concerns from California Attorney General Rob Bonta. Critics warn this shift might lead to misuse of charitable tax exemptions, as the nonprofit arm retains nominal control over the for-profit entity. The newly-formed OpenAI Foundation will hold 26% of the company’s estimated $130 billion valuation, making it one of the richest philanthropic organizations globally. Despite promised oversight, experts question safeguards to maintain the foundation’s independence from profit motives. OpenAI, previously founded as a nonprofit to benefit humanity, faces scrutiny over incidents involving its AI systems and potential conflicts of interest with board compositions. Advocacy groups, including Eyes On OpenAI, express concern that the restructuring could enable profit-driven decisions contrary to the organization’s original mission. Analysts highlight the need for an independent safety committee to mitigate risks associated with AI technology, as ongoing monitoring by state authorities remains essential.
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