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TechCheck

The Fate of OpenAI’s Nonprofit Mission, Plus TikTok Ban Gains Momentum 3/11/24

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 11 March 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

There's a new, uncomfortable dynamic at OpenAI: a non-profit mission with a corporate profit motive. The recent changes at OpenAI's board underscore that - replacing AI researchers and specialists with business execs familiar with building for-profit companies. Plus, a new bipartisan effort to ban TikTok is gaining momentum in Congress. We dig into former President Trump’s flip-flopping stance on the ban.

Transcript

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0:00.0

Sam Altman back on the board of open AI along with three new directors after the startup wrapped up its investigation into that failed boardroom coup.

0:08.0

Dr. Durbosa digs into what the new board might mean for the future of open AI in today's tech check morning

0:13.2

D hey good morning Carl so that investigation it hopes to put an end to months of

0:17.8

internal conflict in questions but it also underscores the new uncomfortable

0:22.2

dynamic at open AI and that is a nonprofit

0:24.9

mission with a corporate profit motive. Now here's what the board looks like now

0:28.8

Altman and DeAngelo remain the previous members were less well known outside of AI research and

0:34.7

ethics circles. They were replaced with experienced business executives

0:38.9

familiar with building for-profit companies. This is now a Gen AI startup, a darling at that that is well equipped

0:45.2

to handle public scrutiny and drive more revenue and profits, but it's also less aligned with

0:50.0

open AI's founding mission to build artificial general intelligence that is safe and

0:54.5

benefits all of humanity which is also the point of Elon Musk's lawsuit against the company.

0:59.7

So looking forward it's plausible that we could see that structure change and the elimination

1:04.4

of caps on the maximum financial returns to investors and employees.

1:08.8

Now not that Open AI has had any problem raising billions of dollars in capital but it could further open

1:14.3

the floodgates for more money especially as the competition heats up there would be more

1:19.0

of a payoff if it wasn't a nonprofit now another interesting dynamic of the new board,

1:23.9

it includes several executives with experience

1:26.6

at Meta, another controversial tech company

1:28.8

that's been under fire and had to face responsibility

1:31.4

and ethics scrutiny over the years.

1:33.4

There's Brett Taylor, Fiji Simo, and Dr. Susan Desmond Helmand.

...

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