#209 – Rose Chan Loui on OpenAI’s gambit to ditch its nonprofit

#209 – Rose Chan Loui on OpenAI’s gambit to ditch its nonprofit

One OpenAI critic calls it “the theft of at least the millennium and quite possibly all of human history.” Are they right?

Back in 2015 OpenAI was but a humble nonprofit. That nonprofit started a for-profit, OpenAI LLC, but made sure to retain ownership and control. But that for-profit, having become a tech giant with vast staffing and investment, has grown tired of its shackles and wants to change the deal.

Facing off against it stand eight out-gunned and out-numbered part-time volunteers. Can they hope to defend the nonprofit’s interests against the overwhelming profit motives arrayed against them?

That’s the question host Rob Wiblin puts to nonprofit legal expert Rose Chan Loui of UCLA, who concludes that with a “heroic effort” and a little help from some friendly state attorneys general, they might just stand a chance.

Links to learn more, highlights, video, and full transcript.

As Rose lays out, on paper OpenAI is controlled by a nonprofit board that:

  • Can fire the CEO.
  • Would receive all the profits after the point OpenAI makes 100x returns on investment.
  • Is legally bound to do whatever it can to pursue its charitable purpose: “to build artificial general intelligence that benefits humanity.”

But that control is a problem for OpenAI the for-profit and its CEO Sam Altman — all the more so after the board concluded back in November 2023 that it couldn’t trust Altman and attempted to fire him (although those board members were ultimately ousted themselves after failing to adequately explain their rationale).

Nonprofit control makes it harder to attract investors, who don’t want a board stepping in just because they think what the company is doing is bad for humanity. And OpenAI the business is thirsty for as many investors as possible, because it wants to beat competitors and train the first truly general AI — able to do every job humans currently do — which is expected to cost hundreds of billions of dollars.

So, Rose explains, they plan to buy the nonprofit out. In exchange for giving up its windfall profits and the ability to fire the CEO or direct the company’s actions, the board will become minority shareholders with reduced voting rights, and presumably transform into a normal grantmaking foundation instead.

Is this a massive bait-and-switch? A case of the tail not only wagging the dog, but grabbing a scalpel and neutering it?

OpenAI repeatedly committed to California, Delaware, the US federal government, founding staff, and the general public that its resources would be used for its charitable mission and it could be trusted because of nonprofit control. Meanwhile, the divergence in interests couldn’t be more stark: every dollar the for-profit keeps from its nonprofit parent is another dollar it could invest in AGI and ultimately return to investors and staff.

Chapters:

  • Cold open (00:00:00)
  • What's coming up (00:00:50)
  • Who is Rose Chan Loui? (00:03:11)
  • How OpenAI carefully chose a complex nonprofit structure (00:04:17)
  • OpenAI's new plan to become a for-profit (00:11:47)
  • The nonprofit board is out-resourced and in a tough spot (00:14:38)
  • Who could be cheated in a bad conversion to a for-profit? (00:17:11)
  • Is this a unique case? (00:27:24)
  • Is control of OpenAI 'priceless' to the nonprofit in pursuit of its mission? (00:28:58)
  • The crazy difficulty of valuing the profits OpenAI might make (00:35:21)
  • Control of OpenAI is independently incredibly valuable and requires compensation (00:41:22)
  • It's very important the nonprofit get cash and not just equity (and few are talking about it) (00:51:37)
  • Is it a farce to call this an "arm's-length transaction"? (01:03:50)
  • How the nonprofit board can best play their hand (01:09:04)
  • Who can mount a court challenge and how that would work (01:15:41)
  • Rob's outro (01:21:25)

Producer: Keiran Harris
Audio engineering by Ben Cordell, Milo McGuire, Simon Monsour, and Dominic Armstrong
Video editing: Simon Monsour
Transcriptions: Katy Moore

Avsnitt(299)

#2 - David Spiegelhalter on risk, stats and improving understanding of science

#2 - David Spiegelhalter on risk, stats and improving understanding of science

Recorded in 2015 by Robert Wiblin with colleague Jess Whittlestone at the Centre for Effective Altruism, and recovered from the dusty 80,000 Hours archives. David Spiegelhalter is a statistician at the University of Cambridge and something of an academic celebrity in the UK. Part of his role is to improve the public understanding of risk - especially everyday risks we face like getting cancer or dying in a car crash. As a result he’s regularly in the media explaining numbers in the news, trying to assist both ordinary people and politicians focus on the important risks we face, and avoid being distracted by flashy risks that don’t actually have much impact. Summary, full transcript and extra links to learn more. To help make sense of the uncertainties we face in life he has had to invent concepts like the microlife, or a 30-minute change in life expectancy. (https://en.wikipedia.org/wiki/Microlife) We wanted to learn whether he thought a lifetime of work communicating science had actually had much impact on the world, and what advice he might have for people planning their careers today.

21 Juni 201733min

#1 - Miles Brundage on the world's desperate need for AI strategists and policy experts

#1 - Miles Brundage on the world's desperate need for AI strategists and policy experts

Robert Wiblin, Director of Research at 80,000 Hours speaks with Miles Brundage, research fellow at the University of Oxford's Future of Humanity Institute. Miles studies the social implications surrounding the development of new technologies and has a particular interest in artificial general intelligence, that is, an AI system that could do most or all of the tasks humans could do. This interview complements our profile of the importance of positively shaping artificial intelligence and our guide to careers in AI policy and strategy Full transcript, apply for personalised coaching to work on AI strategy, see what questions are asked when, and read extra resources to learn more.

5 Juni 201755min

#0 – Introducing the 80,000 Hours Podcast

#0 – Introducing the 80,000 Hours Podcast

80,000 Hours is a non-profit that provides research and other support to help people switch into careers that effectively tackle the world's most pressing problems. This podcast is just one of many things we offer, the others of which you can find at 80000hours.org. Since 2017 this show has been putting out interviews about the world's most pressing problems and how to solve them — which some people enjoy because they love to learn about important things, and others are using to figure out what they want to do with their careers or with their charitable giving. If you haven't yet spent a lot of time with 80,000 Hours or our general style of thinking, called effective altruism, it's probably really helpful to first go through the episodes that set the scene, explain our overall perspective on things, and generally offer all the background information you need to get the most out of the episodes we're making now. That's why we've made a new feed with ten carefully selected episodes from the show's archives, called 'Effective Altruism: An Introduction'. You can find it by searching for 'Effective Altruism' in your podcasting app or at 80000hours.org/intro. Or, if you’d rather listen on this feed, here are the ten episodes we recommend you listen to first: • #21 – Holden Karnofsky on the world's most intellectual foundation and how philanthropy can have maximum impact by taking big risks • #6 – Toby Ord on why the long-term future of humanity matters more than anything else and what we should do about it • #17 – Will MacAskill on why our descendants might view us as moral monsters • #39 – Spencer Greenberg on the scientific approach to updating your beliefs when you get new evidence • #44 – Paul Christiano on developing real solutions to the 'AI alignment problem' • #60 – What Professor Tetlock learned from 40 years studying how to predict the future • #46 – Hilary Greaves on moral cluelessness, population ethics and tackling global issues in academia • #71 – Benjamin Todd on the key ideas of 80,000 Hours • #50 – Dave Denkenberger on how we might feed all 8 billion people through a nuclear winter • 80,000 Hours Team chat #3 – Koehler and Todd on the core idea of effective altruism and how to argue for it

1 Maj 20173min

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