The Attorney General of the US state of Delaware sent OpenAI’s lawyers a request for additional information related to plans to transform the non-profit organization into a commercial company, Axios reports.
Image source: Mariia Shalabaieva / unsplash.com
For OpenAI, billions of dollars of investment are at stake: a non-profit organization is registered in Delaware, the state attorney general could theoretically challenge the company’s plan and slow down its reorganization. As Kathleen Jennings, who occupies this post, said in the request, it is sent in response to reports that OpenAI is considering the possibility of reorganizing and becoming a commercial company. “If these reports are true, it is important that my office has the opportunity to review the terms of any such transaction before it is completed. Current OpenAI beneficiaries have an interest in ensuring that charitable assets are not transferred to private individuals without due consideration,” the official said.
OpenAI started out as a non-profit research organization that wanted to ensure that artificial intelligence would benefit all of humanity, but over time Microsoft and other companies began investing in it. This year, the software giant and other investors demanded that the actual change in the organization’s status be sealed – OpenAI promised to carry out the transformation within two years or return the money. The startup has already confirmed that the document has been received, expressed its readiness to answer the official’s questions and continue to implement the plan.
«The Board of Directors of OpenAI Inc., a non-profit organization, is dedicated to fulfilling our fiduciary responsibilities by ensuring the company is well positioned to advance its mission of ensuring that strong artificial intelligence (AGI) benefits all of humanity. “As we continue to consult with independent financial and business experts, any potential restructuring will enable the nonprofit to continue to thrive and receive full value for its current stake in OpenAI, a for-profit company, with enhanced capabilities to further its mission,” said OpenAI Chairman Bret Taylor. (Bret Taylor).
Reorganizing a nonprofit into a for-profit company isn’t the easiest task—not-for-profit status comes with some obligations—but legal experts believe OpenAI can find a way and implement the plan. In practice, Delaware authorities rarely interfere with the activities of commercial and non-profit organizations.