OpenAI Saga Continues
The ongoing tension between the incredible current value of OpenAI and its nonprofit status continues, with two recent significant developments.
First, last month OpenAI announced that while remaining a nonprofit it will move to controlling ownership of a public benefit corporation, with equity also owned by Microsoft (pursuant to a new memorandum of understanding (MOU)) and other investors. The only public information about the MOU I could find is this brief announcement made by both OpenAI and Microsoft:
OpenAI and Microsoft [reverse order for Microsoft announcement] have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership. We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.
Coverage: FoxBusiness; siliconANGLE.
More recently, NBC News reported that seven nonprofit groups that have criticized OpenAI have been subject to broad subpoenas arising out of OpenAI’s litigation with Elon Musk, which the groups assert “appear to be a form of legal intimidation.” The lengthy article details the basis for this assertion, as well as the current status of this litigation.