OpenAI, a non-profit Artificial Intelligence-driven research organization to foster and develop friendly Artificial Intelligence that benefits humanity as a whole, recently announced the creation of a new for-profit company, named OpenAI LP, to balance its huge expenditures into computing and AI talents. As part of the announcement, former President of Y Combinator Sam Altman who stepped down earlier this month has joined OpenAI LP as a CEO.
With this move to develop OpenAI LP, the company’s mission is to make sure that Artificial General Intelligence (AGI) benefits all of humanity, mainly by trying to build safe AGI and share the benefits with the world. In a statement, OpenAI stated that returns for our first round of investors are capped at 100x their investment (commensurate with the risks in front of us), and we expect this multiple to be lower for future rounds as we make further progress. Any returns beyond the cap amount will revert to OpenAI. The primary responsibility of OpenAI LP is to advance the purpose of the OpenAI Charter, where all investors and workforces sign agreements that OpenAI LP’s obligation to the Charter always comes first, even at the expense of some or their entire financial stake. Though, as per the reports, the key reason behind the new capped-profit subsidiary is OpenAI seeks more money. The company anticipated to invest billions of dollars in developing large-scale Cloud compute, attracting and retaining talented people, and building AI supercomputers in the near future.
OpenAI’s OpenAI LP will be administered by the original OpenAI Board, where only a few on the Board of Directors are permitted to hold financial stakes and those who do not will be able to vote on decisions if the financial interests are seen to conflict with OpenAI’s mission. The non-profit research organization intends to form a sustainable way towards long-term development of AI. It also plans to plans to strike a balance between benefiting humanity and turning a profit.