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Critics Say OpenAI’s Revised Restructuring Still Prioritizes Profit Over Public Good

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A group of former OpenAI employees and AI experts — including renowned computer scientist Geoffrey Hinton — has submitted a new letter to California and Delaware attorneys general, warning that OpenAI’s latest organizational restructuring still fails to uphold its founding mission of developing artificial intelligence for the benefit of humanity.

The group, calling itself Not For Private Gain, first criticized OpenAI earlier this year when the company proposed a plan to reduce control by its nonprofit parent entity. Facing backlash, OpenAI scaled back the changes and announced a revised plan in May: to convert its for-profit unit into a Public Benefit Corporation (PBC), with the nonprofit retaining major shareholder status.

Despite this shift, the group argues in its May 12 letter that the revised structure still allows for investor interests to outweigh ethical safeguards:

  • Under the current setup, OpenAI’s nonprofit has full operational control over the for-profit entity, including executive hiring and firing. The group says this control would be weakened under the new PBC, undermining accountability.

  • They also note that while the current for-profit entity is legally bound to prioritize OpenAI’s mission and charter over profits, a PBC has no such explicit legal obligation.

OpenAI responded, stating: “The nonprofit would continue to have control over the PBC, full stop. Any suggestion otherwise is not accurate.”

Broader Concerns and Musk’s Involvement:

The restructuring debate has sparked wider criticism, including from Elon Musk, OpenAI’s co-founder and now rival via his company xAI. Musk is currently suing OpenAI for allegedly breaching its founding agreement by prioritizing commercial goals over public benefit. A lawyer representing Musk backed the letter, dismissing OpenAI’s revised structure as “nothing but window dressing.”

OpenAI’s main corporate backer, Microsoft, has invested more than $13 billion, and the restructuring is viewed as a means to attract additional capital needed to remain competitive in the rapidly evolving and costly AI sector.

While a Public Benefit Corporation is designed to balance profits and public interest, critics remain skeptical that the new model will provide the necessary governance and enforcement mechanisms to prevent the misuse of powerful AI technologies.

Chinese Vice Premier Zhang Guoqing to Attend Paris AI Summit

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Chinese Vice Premier Zhang Guoqing will visit France from February 10 to 12 as President Xi Jinping’s special representative at the AI Action Summit, the Chinese Foreign Ministry announced on Friday. The summit will bring together representatives from nearly 100 nations to discuss the safe and responsible development of artificial intelligence (AI).

Foreign Ministry spokesperson Lin Jian expressed China’s eagerness to enhance communication and collaboration with all attending nations. “China looks forward to strengthening communication and exchanges with all parties,” Lin said during a regular briefing. He also stated that China aims to build a consensus on AI cooperation and promote the implementation of the United Nations Global Digital Compact by participating in the summit.

The summit is expected to focus on strategies to manage AI development and foster international cooperation in AI technologies. The U.S. delegation, led by Vice President JD Vance, will also be attending, though it will not include technical staff from the AI Safety Institute

Trump Reverses Biden’s Executive Order on AI Risk Mitigation

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U.S. President Donald Trump on Monday revoked an executive order signed by former President Joe Biden in 2023, aimed at addressing the risks associated with artificial intelligence (AI). The order, which required AI developers to disclose safety test results for AI systems with potential risks to national security, the economy, public health, or safety, has been a point of contention as it came at a time when Congress had yet to pass comprehensive AI regulation.

Key Points:

  • Revocation of Biden’s Executive Order: Trump’s decision to revoke Biden’s 2023 executive order dismantles the framework that sought to introduce safety protocols for AI development. Biden’s order mandated AI developers to provide test results for high-risk AI systems to the U.S. government before they were made public, underlining concerns over national security and public safety.
  • Republican Stance on AI: The 2024 Republican Party platform had previously called for the repeal of Biden’s order, citing its potential to stifle AI innovation. The platform emphasized that AI development should be grounded in principles of free speech and human flourishing, aligning with Trump’s decision.
  • Risks and Opportunities in AI: While AI, particularly generative AI, has generated both excitement and concern due to its potential to automate tasks and disrupt industries, there are also fears about its consequences on jobs and security. The rapid advancements in AI technologies, such as those capable of creating text, images, and videos, have raised alarms about unforeseen risks.
  • Recent Developments in AI Oversight: Just last week, the U.S. Commerce Department introduced new restrictions on AI chip and technology exports, drawing backlash from tech companies like Nvidia. While Trump revoked Biden’s order concerning AI safety protocols, Biden’s administration has not yet fully relaxed its regulatory approach, as seen in a separate executive order aimed at supporting energy needs for AI data centers.