The Controversial Decision to Create a For-Profit Arm

Artificial intelligence (AI) is one of the fastest-developing technologies in the world today, and one of the companies leading the charge is OpenAI. Co-founded by Sam Altman in 2015, OpenAI is a non-profit that aims to create artificial intelligence outside the influence of shareholders. However, in 2019, OpenAI made the controversial decision to create a for-profit arm, which raised concerns about the direction of the company and the safety of its technology.

Sam Altman is a well-known figure in Silicon Valley, having previously run the startup accelerator Y Combinator, which accepts mostly college students who want to create companies. Altman dropped out of Stanford to create a social networking startup called Looped, which was not very successful. However, Altman's interest in AI and his concern about its potential misuse led him to co-found OpenAI in 2015.

When OpenAI started, it was a non-profit, but in 2019, the company made the decision to create a for-profit arm. The reason for this shift was that the best way to make progress in AI was through large language models, which require a lot of computational power. OpenAI realized that it would not be able to raise that much money as a non-profit, so they decided to create a for-profit to attract investors who wanted to make a return on their investment in OpenAI.

The decision to create a for-profit arm was controversial, and it alienated many people who had worked closely with Altman. Elon Musk, a co-founder of OpenAI, did not like the decision and wanted more control. However, he was essentially rebuffed, and after the release of Chat GPT, he has been vocal about the Microsoft deal that OpenAI has done. Microsoft has invested $10 billion in OpenAI, enabled by the decision to become a for-profit, and Musk has criticized the degree of corporate influence that OpenAI has come under. OpenAI is selling its models to companies like Snapchat and Instacart, and licensing its technology to Microsoft, which has come under fire.

Altman has defended the Microsoft deal, saying that it was something that he almost had no choice but to do, given the large computational costs associated with developing large language models. He emphasizes that it is not a typical corporate partnership, and OpenAI has the right to cancel Microsoft shares at any time if they think the partnership has gone astray or if it started to develop dangerous technologies. Altman also emphasizes that there are profit caps to Microsoft's investment, so Microsoft cannot make more than seven times the total amount of money they have invested. However, this is still a very large profit cap, considering they invested $13 billion.

Altman's take on the idea of having global standards or global governance over AI is a bit vague. He wants the executive team at OpenAI to have less control over the technology, and he wants to give everyday citizens a say. However, he does not provide a clear plan for how this will be achieved. Altman believes that AI has the potential to be a transformative technology that can help solve some of the world's biggest problems. However, he acknowledges that there are also risks involved, and that it is important to develop AI in a way that is safe and beneficial for everyone.

In conclusion, Sam Altman is a well-known figure in Silicon Valley who has been at the center of one of the fastest developing technologies in the world today. He co-founded OpenAI in 2015 to develop artificial intelligence outside the influence of shareholders. However, in 2019, OpenAI made the controversial decision to create a for-profit arm, which raised concerns about the direction of the company and the safety of its technology. Altman has defended this decision, saying that it was necessary to raise the money needed to continue developing advanced AI systems. He has also emphasized the importance of responsible AI development and ethical considerations in the field. Despite the controversies surrounding OpenAI's direction, Altman remains a respected leader in the tech industry, known for his forward-thinking approach and his commitment to making the world a better place through technology. As AI continues to rapidly advance, it will be interesting to see what role Altman and OpenAI play in shaping the future of this powerful technology.