Publish: 10:27, 13 Oct, 2024 Updated:

Documents show OpenAI’s journey of becoming $157bn company

Online Desk
Documents show OpenAI’s journey of becoming $157bn company
সংগৃহীত ছবি

The OpenAI, an American Artificial Intelligence (AI) giant recently disclosed their story of becoming a $157bn company from a non-profit one, reports AP.

8 years back, in 2016, a scientific research organization incorporated in Delaware and based in Mountain View, California, applied to be recognized as a tax-exempt charitable organization by the Internal Revenue Service (IRS).

Called OpenAI, the nonprofit told the IRS its goal was to “advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.”

Its assets included a $10 million loan from one of its four founding directors and now CEO, Sam Altman.

The application, which nonprofits are required to disclose and which OpenAI provided to the media, offers a view back in time to the origins of the artificial intelligence giant that has since grown to include a for-profit subsidiary recently valued at $157 billion by investors.

It’s one measure of the vast distance OpenAI — and the technology that it researches and develops — has traveled in under a decade.

In the application, OpenAI indicated it did not plan to enter into any joint ventures with for-profit organizations, which it has since done. It also said it did “not plan to play any role in developing commercial products or equipment,” and promised to make its research freely available to the public.

A spokesperson for OpenAI, Liz Bourgeois, said in an email that the organization’s missions and goals have remained constant, though the way it’s carried out its mission has evolved alongside advances in technology. She also said the nonprofit does not carry out any commercial activities.

Attorneys who specialize in advising nonprofits have been watching OpenAI’s meteoric rise and its changing structure closely. Some wonder if its size and the scale of its current ambitions have reached or exceeded the limits of how nonprofits and for-profits may interact. They also wonder the extent to which its primary activities advance its charitable mission, which it must, and whether some may privately benefit from its work, which is prohibited.

In general, nonprofit experts agree that OpenAI has gone to great lengths to arrange its corporate structure to comply with the rules that govern nonprofit organizations. OpenAI’s application to the IRS appears typical, said Andrew Steinberg, counsel at Venable LLP and a member of the American Bar Association’s nonprofit organizations committee.

If the organization’s plans and structure changed, it would need to report that information on its annual tax returns, Steinberg said, which it has.

“At the time that the IRS reviewed the application, there wasn’t information of existing corporate structure and the investment structure that they pursued was what they had in mind,” he said. “And that’s okay because that may have developed later.”

Here are some highlights from the application:

Early research goals

At inception, OpenAI’s research plans look quaint in light of the race to develop AI that was in part set off by its release of ChatGPT in 2022.

OpenAI told the IRS it planned to train an AI agent to solve a wide variety of games. It aimed to build a robot to perform housework and to develop a technology that could “follow complex instructions in natural language.”

Today, its products, which include text-to-image generators and chatbots that can detect emotion and write code, far exceed those technical thresholds.

No commercial ambitions

The nonprofit OpenAI indicated on the application form that it had no plans to enter into joint ventures with for-profit entities.

It also wrote, “OpenAI does not plan to play any role in developing commercial products or equipment. It intends to make its research freely available to the public on a nondiscriminatory basis.”

OpenAI spokesperson Bourgeois said the organization believes the best way to accomplish its mission is to develop products that help people use AI to solve problems, including many products it offers for free. But they also believe developing commercial partnerships has helped further their mission, she said.

Intellectual property

OpenAI reported to the IRS in 2016 that regularly sharing its research “with the general public is central to the mission of OpenAI. OpenAI will regularly release its research results on its website and share software it has developed with the world under open source software licenses.”

It also wrote it “intends to retain the ownership of any intellectual property it develops.”

The value of that intellectual property and whether it belongs to the nonprofit or for-profit subsidiary could become important questions if OpenAI decides to alter its corporate structure, as Altman confirmed in September it was considering.

Bd-Pratidin English/ Afsar Munna

More News
Prada and Axiom Space unveil spacesuit designs for NASA’s Artemis III moon mission
Prada and Axiom Space unveil spacesuit designs for NASA’s Artemis III moon mission
Disney forms business unit for AI, mixed reality
Disney forms business unit for AI, mixed reality
Apple to bring ChatGPT, intelligence features to iOS 18.2
Apple to bring ChatGPT, intelligence features to iOS 18.2
Chinese space station crew returns after six months in orbit
Chinese space station crew returns after six months in orbit
Bluetooth 6.0: A game changer for your smartphone and devices
Bluetooth 6.0: A game changer for your smartphone and devices
P-12, electric ferry that glides over water
P-12, electric ferry that glides over water
OpenAI launches ChatGpt search engine, competing with google
OpenAI launches ChatGpt search engine, competing with google
Indonesia bans Google pixel sales over local content rules
Indonesia bans Google pixel sales over local content rules
Nvidia's Osaki: Humanoid AI and robotics market set for major growth
Nvidia's Osaki: Humanoid AI and robotics market set for major growth
Instagram lowering quality of less viewed videos 'alarming' creators
Instagram lowering quality of less viewed videos 'alarming' creators
Google adds AI email drafting tool to Gmail web
Google adds AI email drafting tool to Gmail web
TikTok’s founder is now China’s richest person
TikTok’s founder is now China’s richest person
Latest News
Bashundhara Group distributes Quran Sharif in Bancharampur
Bashundhara Group distributes Quran Sharif in Bancharampur

14 minutes ago | National

Bangladesh supports Palestine's independence, sovereignty: Home Adviser
Bangladesh supports Palestine's independence, sovereignty: Home Adviser

26 minutes ago | National

Bangladesh reaffirms ‘zero tolerance’ stance on terrorism, commits to global security
Bangladesh reaffirms ‘zero tolerance’ stance on terrorism, commits to global security

50 minutes ago | National

Prada and Axiom Space unveil spacesuit designs for NASA’s Artemis III moon mission
Prada and Axiom Space unveil spacesuit designs for NASA’s Artemis III moon mission

1 hour ago | Tech

Ex-state minister Shahiduzzaman sent to jail
Ex-state minister Shahiduzzaman sent to jail

2 hours ago | National

Aminul announced as convener, Mostafa member secretary in BNP Dhaka North convener committee
Aminul announced as convener, Mostafa member secretary in BNP Dhaka North convener committee

2 hours ago | City

CA phones Sohel Taj, assures him of presenting true history
CA phones Sohel Taj, assures him of presenting true history

2 hours ago | National

US election: Harris, Trump in Pennsylvania for final push
US election: Harris, Trump in Pennsylvania for final push

2 hours ago | International

BNP seeks public role in political decisions
BNP seeks public role in political decisions

2 hours ago | National

US warships ‘under close watch’: Iran's Navy chief
US warships ‘under close watch’: Iran's Navy chief

2 hours ago | International

BTRC working to reduce internet cost: Chairman
BTRC working to reduce internet cost: Chairman

3 hours ago | National

Steps being taken to ensure voting rights of expats: Commission Chief to Chief Adviser
Steps being taken to ensure voting rights of expats: Commission Chief to Chief Adviser

3 hours ago | National

58 more cadet SIs relieved ‘for violating discipline’
58 more cadet SIs relieved ‘for violating discipline’

3 hours ago | National

Top 10 Netflix English originals to binge-watch in December 2024
Top 10 Netflix English originals to binge-watch in December 2024

3 hours ago | Showbiz

Traffic for London to support DNCC for improving traffic management
Traffic for London to support DNCC for improving traffic management

3 hours ago | City

2 workers killed in Patuakhali wall collapse
2 workers killed in Patuakhali wall collapse

4 hours ago | City

China registered lowest marriages this year
China registered lowest marriages this year

4 hours ago | Lifestyle

Bashundhara Shuvosangho holds dengue awareness seminar in Ghoraghat
Bashundhara Shuvosangho holds dengue awareness seminar in Ghoraghat

4 hours ago | Shuvosangho

Israel claims of killing Hezbollah commander in Lebanon
Israel claims of killing Hezbollah commander in Lebanon

4 hours ago | International

Motives behind American celebrities to support presidential candidates
Motives behind American celebrities to support presidential candidates

4 hours ago | International

36 killed as bus falls in gorge in Uttarakhand
36 killed as bus falls in gorge in Uttarakhand

4 hours ago | International

Disney forms business unit for AI, mixed reality
Disney forms business unit for AI, mixed reality

4 hours ago | Tech

Nazmul's Team Aims to Make History in Familiar Sharjah
Nazmul's Team Aims to Make History in Familiar Sharjah

4 hours ago | Sports

US president election: Voting systems conspiracies are true?
US president election: Voting systems conspiracies are true?

5 hours ago | International

DU admission process begins
DU admission process begins

5 hours ago | City

DSE sees upward trend in early trading
DSE sees upward trend in early trading

5 hours ago | Economy

Joint forces detain 72 ‘drug traders’ from Gazipur slum
Joint forces detain 72 ‘drug traders’ from Gazipur slum

5 hours ago | City

‘Assad not ready for normalization with Türkiye’
‘Assad not ready for normalization with Türkiye’

5 hours ago | International

Taposh of Gaan Bangla arrested from Uttara
Taposh of Gaan Bangla arrested from Uttara

5 hours ago | City

NBR reduces capital gains tax on share sales to boost investment
NBR reduces capital gains tax on share sales to boost investment

5 hours ago | Economy

Most Read
Govt renames 12 hospitals named after Sheikh family members
Govt renames 12 hospitals named after Sheikh family members

21 hours ago | National

Adviser Hassan Ariff calls for expert involvement in mosquito control
Adviser Hassan Ariff calls for expert involvement in mosquito control

20 hours ago | City

Causes of declining mobile data and voice calls
Causes of declining mobile data and voice calls

9 hours ago | Special

Bishwa Ijtema: Home Ministry to meet with two factions of Tabligh Jamaat today
Bishwa Ijtema: Home Ministry to meet with two factions of Tabligh Jamaat today

8 hours ago | City

BMD forecasts light rain, fog in parts of country
BMD forecasts light rain, fog in parts of country

7 hours ago | National

France conducts trial for beheading of a teacher who displayed cartoons of the Prophet to his students
France conducts trial for beheading of a teacher who displayed cartoons of the Prophet to his students

5 hours ago | International

Govt will implement constitutional reforms: Mahfuj
Govt will implement constitutional reforms: Mahfuj

21 hours ago | National

Biswa Ijtema: Date fixed for two phases
Biswa Ijtema: Date fixed for two phases

5 hours ago | City

No one should think about minus 2 formula again, warns Fakhrul
No one should think about minus 2 formula again, warns Fakhrul

21 hours ago | National

Who is ahead – Kamala or Trump?
Who is ahead – Kamala or Trump?

10 hours ago | International

Govt condemns any violence, wants no violence, says  Press Secretary on Shilpakala incident
Govt condemns any violence, wants no violence, says Press Secretary on Shilpakala incident

22 hours ago | National

Former agriculture minister Abdus Shahid in jail
Former agriculture minister Abdus Shahid in jail

23 hours ago | National

Search committee seeks names for CEC, ECs
Search committee seeks names for CEC, ECs

23 hours ago | National

Apple to bring ChatGPT, intelligence features to iOS 18.2
Apple to bring ChatGPT, intelligence features to iOS 18.2

6 hours ago | Tech

'Acting in drama to fulfill mother's wish'
'Acting in drama to fulfill mother's wish'

10 hours ago | Showbiz

Police reformation: Commission seeks public opinion
Police reformation: Commission seeks public opinion

22 hours ago | National

BNP Faces Obstacles in Case Dispositions
BNP Faces Obstacles in Case Dispositions

9 hours ago | Special

Show-cause notice issued to Hasib
Show-cause notice issued to Hasib

23 hours ago | National

Efforts underway to bring back laundered money: CA’s Press Secretary
Efforts underway to bring back laundered money: CA’s Press Secretary

22 hours ago | National

Drug abuse becoming harder to prevent
Drug abuse becoming harder to prevent

7 hours ago | Special

58 more cadet SIs relieved ‘for violating discipline’
58 more cadet SIs relieved ‘for violating discipline’

3 hours ago | National

Action to be taken against police officials who didn’t join after transfer
Action to be taken against police officials who didn’t join after transfer

23 hours ago | National

Zia charitable case: Khaleda Zia allowed to prepare paper book
Zia charitable case: Khaleda Zia allowed to prepare paper book

22 hours ago | National

Likely voters nationwide tilt toward Kamala Harris
Likely voters nationwide tilt toward Kamala Harris

21 hours ago | International

Sunil Gavaskar issues strong statement on Virat Kohli and Rohit Sharma
Sunil Gavaskar issues strong statement on Virat Kohli and Rohit Sharma

6 hours ago | Sports

Lightning strike kills 13 children at Uganda refugee camp
Lightning strike kills 13 children at Uganda refugee camp

22 hours ago | International

Setting the tone: Prof Yunus pens 2 lines for BPL anthem
Setting the tone: Prof Yunus pens 2 lines for BPL anthem

7 hours ago | Sports

10.95 million BDT found at former Additional Secretary's residence
10.95 million BDT found at former Additional Secretary's residence

6 hours ago | National

Perpetrators of July-August violence will be excluded from constitutional reform process: Prof Ali Riaz
Perpetrators of July-August violence will be excluded from constitutional reform process: Prof Ali Riaz

23 hours ago | National

Bangladesh sends 9.30 lakh workers abroad since January
Bangladesh sends 9.30 lakh workers abroad since January

23 hours ago | National