AP Photo/Michael Dwyer OpenAI's Unique Corporate Structure May Have Been Recipe for Trouble
"You either go nonprofit or you go for-profit, I don't think you can split the difference," corporate governance expert Charles Elson said.
November 20, 2023 at 08:19 AM
6 minute read
The mind-spinning developments at OpenAI since Friday are a cautionary tale for the legion of companies that have become interested in mixing traditional business with altruism, a prominent corporate governance expert said.
Crucial to the firing of CEO Sam Altman on Friday were the conflicting goals of the nonprofit parent company OpenAI and its for-profit subsidiary, whose spectacular earnings potential had attracted billions of dollars in investment from Microsoft and others. many national news outlets reported over the weekend.
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