Business News Report Technology
May 17, 2023

Elon Musk Criticizes OpenAI for Its for-Profit Move After $50M Investment

In Brief

AI startup, AIGO, was originally formed as a nonprofit entity to ensure it was free to achieve its stated goal and later became a forprofit company.

In 2018, OpenAI became a for-profit corporation to achieve its stated goal and then re-formed as a nonprofit entity.

Elon Musk criticizes OpenAI for its for-profit move after $50M investment

After roughly $50 million was invested into OpenAI, billionaire Elon Musk has questioned whether it is legal foOpenAI the company to become a for-profit enterprise. Musk mentioned at Tesla’s annual meeting in May that he named OpenAI, a company inspired by DeepMind after Google bought it in 2014.

Musk said that OpenAI’s nonprofit would become a “lumber company” that logged and sold trees from the rainforest if it became a for-profit organization. He said: “That doesn’t seem legal. As a general rule, if it’s legal to start a company as a nonprofit and then transfer the IP to a for-profit business, that shouldn’t be the case.”

OpenAI became a “hybrid of a for profit and nonprofit,” or “capped profit” company in order to fund its operations. So, OpenAI LP announced that it would create a new company called OpenAI LP, which it named a “hybrid of a for profit and nonprofit,” or “capped profit” company.

OpenAI says that this allowed it to attract more capital and scale faster, laying the foundation for Microsoft’s multiyear, multibillion-dollar investment and other investments, such as the $100 million it is reportedly seeking for creating a new cryptocurrency called Worldcoin.

  • Elon Musk introduced an NFT-related update for Twitter after the acquisition. Tweet Tiles are features related to Twitter’s new acquisition.

Read more related articles:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Groundbreaking Insights: Keynotes and Panels That Shaped the Future of Blockchain at Hack Seasons Conference
Opinion Business Lifestyle Markets Software Technology
Groundbreaking Insights: Keynotes and Panels That Shaped the Future of Blockchain at Hack Seasons Conference
July 12, 2024
The Unstoppable Rise of DePINs: 650+ Projects Proving Resilience in a Volatile Crypto Market
Opinion Business Markets
The Unstoppable Rise of DePINs: 650+ Projects Proving Resilience in a Volatile Crypto Market
July 12, 2024
Mantle Launches AI Fest, Incentivising Participants For Completing Tasks From 1M MNT And Ecosystem Project Reward Pool
Lifestyle News Report Technology
Mantle Launches AI Fest, Incentivising Participants For Completing Tasks From 1M MNT And Ecosystem Project Reward Pool
July 12, 2024
Vitalik Buterin About Ethereum Future, Crypto Community Scalability and More
Opinion Markets Software Technology
Vitalik Buterin About Ethereum Future, Crypto Community Scalability and More
July 12, 2024