OpenAI, led by CEO Sam Altman, is seeking to restructure its for-profit arm into a Delaware-based public benefit corporation to raise necessary funding. However, over 30 academics and former employees have expressed concerns, urging Attorney General Rob Bonta to block this move based on the premise that a Delaware PBC lacks the obligation to prioritize public benefit. Critics argue that this shift could compromise OpenAI's original mission to ensure artificial intelligence benefits humanity, as it allows for profit over public good. OpenAI asserts that substantial capital is essential for maintaining competitiveness in the evolving AI landscape.
More than 30 academics, advocates and former OpenAI employees are asking Attorney General Rob Bonta and his Delaware counterpart Kathy Jennings to block the AI giant's proposed restructuring.
The law is clear that a Delaware PBC has no fiduciary obligation to prioritize public benefit over profits, so it's hard to see how OpenAI could claim that this restructuring would be consistent with its charitable purpose.
The hundreds of billions of dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission.
Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness.
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