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The Progressive

NewsWire

A project of Common Dreams

For Immediate Release
Contact:

Emily Leach, eleach@citizen.org

Public Citizen on Elon Musk’s Bid for OpenAI

Today, Elon Musk and a group of investors made a $97.4 billion bid to buy the nonprofit that controls OpenAI.

The news comes after OpenAI announced it would restructure its core business into a for-profit corporation, which Public Citizen has argued means the nonprofit should be dissolved and its value paid into the nonprofit sector — for example, by endowing a new, independent foundation for AI safety. Given that the nonprofit OpenAI currently has controlling authority over the for-profit OpenAI, this amount should probably total in the tens of billions of dollars.

Robert Weissman, co-president of Public Citizen, reacted to Musk’s bid:

“Elon Musk is right that OpenAI has abandoned its nonprofit mission and risks illegitimately pulling money out of the nonprofit sector.

"Nonprofits aren’t for sale. Musk and his affiliates could purchase control of OpenAI For Profit, or they could purchase control of all of OpenAI Nonprofit’s assets. In either instance, the question would remain of where and how the proceeds should be allocated.

"This is the exact question that Public Citizen has raised with the California and Delaware attorneys general. OpenAI Nonprofit and the nonprofit’s board, have failed to uphold their mission, and the funds from the sale of OpenAI For Profit should be allocated to a new charitable foundation to carry out OpenAI’s original purpose.

"If Musk’s offer is legitimate, it sets a price on what OpenAI For Profit must pay to the nonprofit sector as part of its spin off, if that proceeds.

"OpenAI has created an impossible tangle through a complicated corporate structure and abandonment of its nonprofit mission.

"The path forward is for the California and Delaware attorneys general to step in the breach to protect the charitable sector, with these factors in mind: 1) There must be fair compensation for the sale of OpenAI’s assets; 2) the proceeds must go to an independent entity, not under the control of the fatally comprised OpenAI Nonprofit board; 3) in the sale, efforts should be made to promote market competition; 4) special protections should be put in place so that if OpenAI develops Artificial General Intelligence, the technology is shared broadly and responsibly and not allowed to be monopolized."

Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.

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