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For Profit

All articles tagged with #for profit

technology1 year ago

Meta and Musk Clash Over OpenAI's For-Profit Transition

Meta has requested California Attorney General Rob Bonta to block OpenAI's transition from a non-profit to a for-profit entity, arguing that it would allow OpenAI to misuse assets built as a charity for private gains. Meta's letter highlights concerns about the potential market distortion and the implications for Silicon Valley startups. OpenAI, which has achieved commercial success with ChatGPT, argues that the restructuring is necessary to attract investors and continue its mission. The situation is notable given the competitive dynamics between Meta and OpenAI, and Elon Musk's involvement in the matter.

via The Verge|
#elon-musk#for-profit#meta
business1 year ago

Elon Musk Challenges OpenAI's Shift to For-Profit in Court

Elon Musk has filed an injunction in a US court to prevent OpenAI from converting into a for-profit entity and allegedly restricting its investors from funding competitors. Musk, who co-founded OpenAI but left in 2018, argues that the company's shift from a non-profit to a for-profit model under CEO Sam Altman contradicts its original mission. OpenAI, now a major player in AI, is transitioning to a for-profit public benefit corporation to attract more investment, a move Musk opposes, citing potential disadvantages for his own AI startup, xAI.

via Fortune|
#ai#business#elon-musk
business1 year ago

OpenAI's For-Profit Transition Faces Regulatory Scrutiny

OpenAI is in discussions with California and Delaware regulators to transition from a nonprofit to a for-profit company, a move that could attract more investors but raises questions about its original mission. The company, valued at $157 billion, faces challenges in valuing its intellectual property and complying with California laws on nonprofit asset distribution. Elon Musk has criticized the shift, and OpenAI's nonprofit board chairman assures that the nonprofit will continue to exist in any new structure. The company has faced internal tensions over AI safety and commercialization.

via Cointelegraph|
#business#elon-musk#for-profit
business1 year ago

"Blue Cross Blue Shield's Last-Minute Acquisition Cancellation and Regulatory Hearing Updates"

Blue Cross and Blue Shield of Louisiana has decided to shelve its plans for a $2.5 billion sale to Elevance Health for the second time, leading to the cancellation of regulatory hearings. The nonprofit's proposal faced opposition from various stakeholders, including doctors, hospitals, policyholders, and state lawmakers. Blue Cross officials cited the need for more time and information for stakeholders to understand the proposed changes, prompting the withdrawal of the filing with the Louisiana Department of Insurance. It remains uncertain whether the company will attempt a third reorganization to facilitate the sale to Elevance. Elevance expressed continued commitment to the partnership despite the withdrawal. Critics have raised concerns about the deal's structure, Elevance's track record, and the involvement of Gov. Jeff Landry in the proposed foundation.

via NOLA.com|
#blue-cross#business#elevance-health
technology2 years ago

Navigating the OpenAI Meltdown: Microsoft's Control, Altman's Saga, and the Call for Global AI Regulation

OpenAI is facing the challenge of restructuring its corporate governance to balance its nonprofit mission with its for-profit pursuits. The company, known for developing AI technology, is considering introducing a second board to help oversee its operations and ensure alignment with its founding principles. Taking inspiration from longer-lived companies with similar structures, such as Mozilla, OpenAI could establish separate boards for its nonprofit and for-profit arms, allowing for greater autonomy and diverse expertise. This move could address concerns raised by investors and employees while providing a safeguard during crises. OpenAI also needs to fine-tune its governance by establishing specific rules for board composition, succession planning, and policies governing conflicts of interest. Additionally, the company should prioritize transparency by publishing its bylaws and financial information.

via WIRED|
#board-of-directors#for-profit#governance
business2 years ago

OpenAI's Equity Drama: Sam Altman and Elon Musk's Involvement

OpenAI CEO Sam Altman reportedly did not take any equity in the company when it became for-profit, as he was already wealthy from his investments in successful startups. Altman claimed that not having equity would keep him aligned with the company's mission of ensuring AI benefits humanity. Altman and Elon Musk founded OpenAI in 2015 as a non-profit AI research company, but it became a "capped-profit" company after receiving a $1 billion investment from Microsoft. OpenAI's generative AI chatbot, ChatGPT, has gained significant attention in the tech world and the general public.

via Business Insider|
#ai-research#business#equity