OpenAI has recently experienced major changes, with high-profile departures including CTO Mira Muradi. Sam Altman described these changes as a strong transition during an event in Italy. The company is also planning to change its corporate structure from a Nonprofit to a benefit corporation. This shift will grant Sam Altman Equity in the company, sparking debates among industry experts and competitors. Critics like Elon Musk have raised concerns about Altman's motives and questioned the ethical implications of this shift.

The restructuring raises questions about OpenAI’s future in the competitive AI landscape. As competition intensifies from companies like Google, Meta, and Anthropic, OpenAI is striving to secure top talent and sufficient computing resources. Despite executive departures, investors remain confident about OpenAI’s trajectory. Nevertheless, questions linger regarding the company’s methods of acquiring data and the safety measures in place for pursuing Artificial general intelligence (AGI).

Main takeaways from the discussions:

Please remember to turn on the CC button to view the subtitles.

Key Vocabularies and Common Phrases:

1. Decampments [dɪˈkæmpmənts] - (n.) Refers to the act of leaving a place suddenly or secretly.

You mentioned mirror Merati. There were other top researchers that left, and it comes after basically the entire founding team, after Open AI was started has left the company.

2. Governance [ˈɡʌvərnəns] - (n.) The action or manner of controlling or regulating an organization.

It's kind of a unique side of the Governance structure, but it's actually quite common in AI.

3. Visionary [ˈvɪʒənɛri] - (adj.) Suggesting ideas that are innovative or ahead of their time.

They say he could be a Visionary, he could be a snake oil salesman, and that's what we really don't know.

4. Equity [ˈɛkwɪti] - (n.) The value of shares issued by a company.

Sam Altman will get Equity in the company for the first time.

5. Nonprofit [ˌnɒnˈprɒfɪt] - (n.) An organization not conducted for the purpose of making a profit.

We have is that they are now in the middle of changing their corporate structure from being a Nonprofit to a benefit corporation.

6. Stakeholders [ˈsteɪkˌhoʊldərz] - (n.) Individuals or organizations with an interest in a company's activities or success.

That was the stakeholder before they considered the structural change.

7. Transitional [trænˈzɪʃənəl] - (adj.) Relating to a process of change from one state to another.

Hopefully a great transition for everyone involved, and OpenAI will be, you know, stronger for it as we are for all of our transitions.

8. Artificial general intelligence (AGI) [ˌɑːr.tɪˈfɪʃ.əl ˈʤɛnərəl ɪnˈtɛl.ə.dʒəns] - (n.) A form of AI that has the capacity to understand or learn any intellectual task that a human can.

If the ultimate aim is Artificial general intelligence or AGI?

9. Fundraising [ˈfʌndˌreɪzɪŋ] - (n.) Collecting money for a particular purpose, especially for a charity.

The Fundraising is key to get that other side of it, to get the amount of computing power that they need.

10. Governance [ˈgʌvərnəns] - (n.) Oversight or management of an organization or company.

It's kind of a unique side of the Governance structure, but it's actually quite common in AI.

Departures at OpenAI: A Transition from Nonprofit to Profit

More big name departures at OpenAI with some of Sam Altman's top deputies stepping down, including CTO Mira Muradi. Altman putting this spin on the latest shakeup during an event in Italy today. I think this will be hopefully a great transition for everyone involved, and OpenAI will be, you know, stronger for it as we are for all of our transitions. Well, let's discuss that with our own dear Chabosa joining us for tech check today, along with Kate Rooney, both out in San Francisco. And I'm glad you guys are both here.

Kate, maybe you can just start by bringing us up to speed on on what exactly has taken place with this company over the past 24 hours. It's been kind of a wild 24 hours. Kelly so you had some high profile Decampments from OpenAI. You mentioned mirror Merati. There were other top researchers that left, and it comes after basically the entire founding team, after Open AI was started has left the company. So it's sort of continuing this trend that we've seen of top executives leaving. That is part one.

The other part of the reporting we have is that they are now in the middle of changing their corporate structure from being a Nonprofit to a benefit corporation. So this is kind of a unique structure in corporate America. It's kind of a unique side of the Governance structure, but it's actually quite common in AI. So anthropic OpenAI is really rival out here is a public benefit corporation. So is Xai, which is Elon Musk's rival to Openaiden. Some tension there. Ben and Jerry's Patagonia are some other examples of this. But it's they're heading in this direction so that they're essentially going to be a for profit. And as part of that, I'm told by a source that Sam Altman will get Equity in the company for the first time. So it's, a lot is going on, but those are sort of the headlines from the last 24 hours.

Sure. And Deirdre, you know where I'm going with this? To the original sin. That's what Elon Musk is saying, too. He's quoting someone on Twitter who is talking about accusing Sam, basically, of raising $50 million from Elon to start a Nonprofit. Tell everyone you're doing it for the sake of humanity, raise billions of dollars, convert from a Nonprofit to a for profit and grant yourself Equity. And boom. I think there's a lot of people with whom this doesn't sit well. I mean, let's add to that list. Kelly he also called Sam Altman, swindler of the century. He referred to him as Littlefinger, who was basically, you know, the kingmaker in Game of Thrones. And I was laughing at that sound bite you just played from Sam Altman before we got into the segment, you know, saying, hopefully this will go as smoothly as the other transitions.

I mean, what an understatement. The transitions have been wild. I mean, Kate just explained what happened over the last 24 hours. That could fill months for most companies, most controversial startups even. And, you know, Elon Musk is the loudest person in the room. But there's many people here in tech, in Silicon Valley who wonder, who question Sam Altman's motives. They say he could be a Visionary, he could be a snake oil salesman, and that's what we really don't know. But when you have these companies, I mean, you're always walking the line between, you know, being that Visionary and playing fast and loose.

If I. If I might sort of ask the question this way, Kate, is he, you know, it's not so much about the motive. The motives are pretty clear. It's to. To have a massive company, to have the next, you know, Google or Meta or what have you. The question is, is whether it's on the up and up, if there's still going to be, you know, sort of a. A shoe to fall about how they scraped all of this off of the Internet to train these models. And can the company just continue to outrun those allegations?

I think that's a great point, Kelly. The other thing I would bring up is just the moment that we're in and this vulnerability at a time that is really key for open AI when there's a lot of competition, they're fighting off Google on one side they've got Meadow over here, they've got anthropic. So they need top talent. That things I'm told you need to win an AI. It's talented, it's data, it's computing. So they've got, you know, deep pockets now. The Fundraising is key to get that other side of it, to get the amount of computing power that they need, but they also need the talent. So they cannot afford to lose some of these key technological minds to some of their biggest rivals.

I would also say that investors actually are pretty happy with what's going on. I've been talking to people who are involved in this current round say this does not change the underwriting, it does not change the thesis and what this company is worth. They said basically this is the nature of the beast. When it comes to this company, you know what you're signing up for. Decampments from OpenAI are in no way a new thing, as we've seen over the past year.

But, Deirdre, if it's a for profit company and not a research arm, then where is it getting its information to answer our queries? Is it paying for them? Does it have the license to do so? And how expensive will that license be going forward? I would add one really important question there. Are they doing it safely if the ultimate aim is Artificial general intelligence or AGI? I think you do have to question the motives, because when this company was founded, and this is what Elon Musk is really highlighting, is that the stakes are so high here.

I mean, here in California, they're looking at a bill that would make it necessary for generative AI companies to have a kill switch. That is a very real worry from people in the industry that are working on safety. And when Sam Altman was originally questioned, you know, in the past, why he didn't have an Equity stake in OpenAI, he said he chose not to because the board needed a majority of disinterested direct sectors with no stake in the company. So that has all changed. And as Kate just said, and you just said, Kelly, the motive now is to become a big company, like a Google or Facebook or an apple.

That's very, very different. And this is a company like we haven't seen before, right? That pledged to create AGI for all of humanity. That was the stakeholder before they considered the structural change. It's, I think, still one to be grappled with. And this feels like the very, very, very beginning, even as they're trying to, you know, do the massive fundraise, very beginning of people grappling with those problems.

Technology, Business, Innovation, AI Departures, Corporate Restructuring, Sam Altman