![]() ![]() (The “cap” means that OpenAI’s backers can’t ever make more than 100 times their investment in the company.) At the time, Altman and co-founder Ilya Sutskever (a former Google research scientist) explained the move as necessary to pay for all that processing power, as well as recruitment. Just the next year, however, OpenAI transitioned entirely from a non-profit organization to a “capped” for-profit company. It Looks Like You’re Becoming a For-Profit Company He stated his intention to continue advising and donating to the project. At the time, he cited a potential conflict of interest, as his electric vehicle company Tesla was also developing AI systems for its self-driving cars. That said, Musk’s personal involvement in the OpenAI project ended in 2018, when he resigned his board seat. The massive language and image training models on which OpenAI’s apps run require a staggering amount of computing power operating ChatGPT alone costs the company millions of dollars per day. This was only enough to get started, as it turns out, AI research is a considerably expensive pursuit. To stop Skynet from happening, the co-founders pledged $1 billion to fund the project from the start, along with contributions from Amazon Web Services, Infosys, and Y Combinator, the startup accelerator overseen by Altman at the time. Musk and Altman also speak about their dark concerns about corporate AI research, which could even lead to – and we’re quoting Wired here – “robot overlords.” A 2016 Wired piece about OpenAI notes that the group lured skilled engineers away from Google not by competing on salary – which was not even possible at what was then a non-profit – but by leaning into their idealistic and collaborative vision. ![]() As Brockman put it in a blog post introducing the group, to “build value for everyone rather than shareholders.”Īnd to be fair, Musk’s claim that the project was intended specifically as a counter to Google’s AI research is largely accurate. Their ultimate stated goal was to develop the first AGI – Artificial General Intelligence – with the same reasoning and learning powers of a human mind, and to ensure that it was developed safely and with the good of the world in mind. In December of 2015, Musk really was part of a small collective – also including Greg Brockman, Reid Hoffman, Jessica Livingston, Peter Thiel, and current CEO Sam Altman – who founded OpenAI as a non-profit group, with the aim of freely collaborating on AI with outside institutions and sharing all patents and research with the public. Not what I intended at all.” Open: The OpenAI Story Following up on a tweet by finance writer Genevieve Roch-Decter, Musk wrote “OpenAI ws created as an open source… non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft. On Friday morning, Elon Musk responded to a comment on his favorite website about OpenAI, the research laboratory-turned-company that he co-founded along with a number of other tech luminaries in 2015. Sign up to get the latest news on Southern California’s tech, startup and venture capital scene. This is the web version of dot.LA’s weekly newsletter. ![]()
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