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December 31, 2023

Legal News

December 31, 2023

Sam Altman Returns to Open AI

With a nudge from Microsoft Corp., OpenAI's leadership team was successfully reinstated co-founder Sam Altman as the Chief Executive Officer, a move that took place recently. The precise composition of the board is still being finalized, but it is unlikely to quell the ongoing debate that has enveloped the company since its recent turmoil: What should a responsibly-managed artificial intelligence organization entail?

OpenAI has always been an unconventional institution, a reflection of its founders' belief that AI stands apart from the typical Silicon Valley ventures. This perspective led them to reject the conventional venture-backed startup model often adopted for building messaging apps or disrupting traditional industries.

The organization originated as a nonprofit entity in 2015 but later incorporated a for-profit subsidiary to secure the substantial funds required to advance the technology underpinning generative AI products such as ChatGPT and Dall-E. An unconventional board structure was retained to oversee the commercial arm.

The attorneys at Outside Legal Counsel LLP represent boards, shareholders, companies, executives and employees. Please reach out to us for more information about our services and how we can help you so that you can avoid governing structures that lead to coups.

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