The Lawfare Podcast Lawfare Daily: Page Hedley and Gad Weiss on OpenAI’s Latest Corporate Governance Pivot
May 22, 2025
Join Page Hedley, a Senior Advisor at the Forecasting Research Institute, and Gad Weiss, a Wagner Fellow at NYU Law, as they dive into OpenAI's controversial corporate governance changes. They unpack the shift from non-profit to profit-driven motives in AI development and examine its implications for ethical considerations. The duo highlights the challenges of balancing investor interests with public accountability and reflects on the potential risks this poses for the future of artificial intelligence. Insightful discussions promise thought-provoking revelations!
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Differences in Corporate Structures
- Nonprofits prioritize charitable purposes above all, with legal enforcement by attorneys general.
- For-profits focus on shareholder value, balancing social goals is complex and varies by entity type.
Nonprofit vs Public Benefit Corp
- Nonprofits legally must prioritize their charitable mission, unlike public benefit corporations.
- Public benefit corporations balance profit with social goals, but enforcement is weak and mainly shareholder-driven.
OpenAI's Nonprofit Origin Story
- OpenAI was founded as a nonprofit to ensure AGI benefits the public, not just shareholders.
- The founders feared Google’s corporate motives and raised donations to lead safe AI development.