"EyesOnOpenAI, a coalition of dozens of California foundations and nonprofits, is challenging OpenAI, the company behind ChatGPT, accusing it of failing to uphold the transparency and accountability standards required of charitable organizations. The coalition called on the California attorney general to investigate whether up to $300 billion in OpenAI's charitable assets are being used for private profit instead of public good."
"OpenAI operates under an unusual structure where a nonprofit entity oversees a for-profit subsidiary that develops commercial AI products like ChatGPT. EyesOnOpenAI has been raising concerns about whether the company is staying true to its founding mission of developing AI that benefits humanity. The EyesOnOpenAI coalition points to OpenAI's recent renegotiations with Microsoft and other investors as proof of an interest in profit over public good."
"If the nonprofit's board overlaps too much with the leadership of the for-profit, it becomes hard to tell whose interests are being served."
EyesOnOpenAI, a coalition of California foundations and nonprofits, alleges that OpenAI's nonprofit-controlled structure may allow up to $300 billion in charitable assets to be used for private profit rather than public benefit. OpenAI's model places a nonprofit entity over a for-profit subsidiary that develops commercial AI like ChatGPT. The coalition cites recent renegotiations with Microsoft and other investors as evidence of profit-driven priorities. Coalition members met with California Attorney General Rob Bonta and sent an urgent letter requesting an investigation into governance, asset protection, and whether overlapping leadership undermines the mission to advance AI for humanity.
Read at Non Profit News | Nonprofit Quarterly
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