The transformation of OpenAI from its altruistic non-profit origins to a commercially-driven entity valued at over USD 157 billion in October 2024 represents a significant paradigm shift in the artificial intelligence (A)I industry. Established in 2015 with the aim of developing AI for the greater good and providing open-source resources, OpenAI has since pivoted to a profit-generating model, underscored by a strategic partnership with Microsoft. This evolution has raised questions about the stewardship of data initially gathered under its non-profit model, intellectual property rights, and financial strategies to optimize tax positions. A pivotal moment in OpenAI’s trajectory was the launch of ChatGPT in November 2022, which rapidly acquired 100 million users, surpassing the adoption rates of social media like TikTok and Instagram. This article delves into OpenAI’s transition, examining the ethical and strategic dimensions of moving from a non-profit through a capped-profit model to a fully commercial approach, scrutinizing the role and alignment of its board members with the organization’s mission statement. Additionally, the analysis extends to the implications of OpenAI’s alliance with Microsoft, probing potential conflicts with the company’s original mission and values.
Business Law Review