OpenAI completes conversion to for-profit business after lengthy legal saga
OpenAI said on Tuesday it had converted its main business into a for-profit corporation, the conclusion of a lengthy and fraught legal saga.A crucial regulator, Kathy Jennings, the Delaware attorney general, said she approved the plan for the startup, which began as a non-profit in 2015, to change to a public benefit corporation, a type of for-profit entity that expresses commitment to bettering society.The company also said it had reorganized its ownership structure and signed a new agreement with its longtime backer Microsoft that gives the software giant a roughly 27% stake in OpenAI’s new for-profit corporation, but changes some of the details of their close partnership.OpenAI was valued at $500bn under the terms of the deal, making Microsoft’s stake worth more than $100bn.The restructuring paves the way for the ChatGPT maker to more easily raise capital and profit off its artificial intelligence technology, even as it remains technically under the control of its own original non-profit entity.
Jennings said in a statement she did not object to the proposal, seemingly bringing to an end more than a year of negotiations and announcements about the future of OpenAI’s governance and the power that for-profit investors and its non-profit board will have over the organization’s technology.The attorneys general of Delaware, where OpenAI is incorporated, and California, where it is headquartered, had both said they’re investigating the proposed changes.OpenAI said it completed its restructuring “after nearly a year of engaging in constructive dialogue” with the offices in both states.“OpenAI has completed its recapitalization, simplifying its corporate structure,” said a blog post on Tuesday from Bret Taylor, the chair of OpenAI’s board of directors.Elon Musk, one of the co-founders of OpenAI and a former ally of Altman, had challenged the conversion with a lawsuit, which he dropped once and refiled before making a surprise bid of nearly $100bn to take control of the startup.
Sign up to TechScapeA weekly dive in to how technology is shaping our livesafter newsletter promotion“The non-profit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives,” Taylor said.AGI stands for artificial general intelligence, which OpenAI defines as “highly autonomous systems that outperform humans at most economically valuable work”.OpenAI was founded as a non-profit in 2015 with a mission to safely build AGI for humanity’s benefit.OpenAI had previously said its own board will decide when AGI is reached, effectively ending its Microsoft partnership.But it now says that “once AGI is declared by OpenAI, that declaration will now be verified by an independent expert panel”, and that Microsoft’s rights to OpenAI’s confidential research methods “will remain until either the expert panel verifies AGI or through 2030, whichever is first”.
Microsoft will also retain some commercial rights to OpenAI products “post-AGI”,Microsoft put out the same announcement about the revised partnership on Tuesday but declined further comment,Going forward, the non-profit will be called the OpenAI Foundation and Taylor said it would grant out $25bn toward health and curing diseases and protecting against the cybersecurity risks of AI,He did not say over what time period those funds would be disbursed,Robert Weissman, co-president of the non-profit Public Citizen, said this arrangement does not guarantee the non-profit independence, likening it to a corporate foundation that will serve the interests of the for-profit.
Even as the non-profit’s board may technically remain in control, Weissman said that control “is illusory because there is no evidence of the non-profit ever imposing its values on the for-profit”.
Novo Nordisk bids $9bn for obesity drug maker Metsera in challenge to Pfizer
Novo Nordisk has launched a surprise $9bn (£6.9bn) offer for the US obesity-focused biotech firm Metsera that could gazump an existing bid from Pfizer as the pharmaceutical giants fight for dominance in the weight-loss market.The bid comes weeks after Metsera agreed to a $7.3bn takeover from the US group Pfizer. Denmark’s Novo Nordisk, which owns the weight-loss drugs Ozempic and Wegovy, lost out in a competitive auction processin September
ECB keeps interest rates on hold despite eurozone inflation fears
The European Central Bank kept interest rates on hold on Thursday for the third meeting in a row despite concerns that a modest economic recovery across the eurozone would fuel inflation.The ECB kept its key deposit rate at 2% despite annual price growth rising to 2.2% across the 20-member euro bloc in September, up from 2% in August and 1.7% a year earlier.In the 27-member EU, annual inflation was 2
Google Pixel 10 Pro Fold review: dust-resistant and more durable foldable phone
Google’s third-generation folding phone promises to be more durable than all others as the first with full water and dust resistance while also packing lots of advanced AI and an adaptable set of cameras.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The Pixel 10 Pro Fold builds on last year’s excellent 9 Pro Fold by doing away with gears in the hinge along its spine allowing it to deal with dust, which has been the achilles heel of all foldable phones until now, gumming up the works in a way that just isn’t a problem for regular slab phones
Teenage boys using ‘personalised’ AI for therapy and romance, survey finds
The “hyper-personalised” nature of AI bots is drawing in teenage boys who now use them for therapy, companionship and relationships, according to research.A survey of boys in secondary schools by Male Allies UK found that just over a third said they were considering the idea of an AI friend, with growing concern about the rise of AI therapists and girlfriends.The research comes as character.ai, the popular artificial intelligence chatbot startup, announced a total ban on teens from engaging in open-ended conversations with its AI chatbots, which millions of people use for romantic, therapeutic and other conversations.Lee Chambers, the founder and chief executive of Male Allies UK, said: “We’ve got a situation where lots of parents still think that teenagers are just using AI to cheat on their homework
India beat Australia in historic chase to reach Women’s Cricket World Cup final – as it happened
As heart rates stabilise east of GMT, I’m off for a soothing vada pav at Manchester Chit n Chaat (as kindly recommended by Krishnamoorthy’s cousin). Thank you all for your company and your emails – sorry I didn’t get around to them all.There will be a new winner of the Women’s World Cup on Sunday. See you there.Harmanpreet Kaur, with the face of a woman dazed by events
India chase down record total to stun champions Australia and reach World Cup final
India pulled off a dramatic record run-chase to knock reigning champions Australia out of the World Cup, led by an outstanding century from Jemimah Rodrigues.Rodrigues was dropped three times by Australia, on 50, 83 and 106, eventually finishing unbeaten on 127 as the seven-time world champions uncharacteristically cracked under the pressure of defending 338. Running back from mid-off, Tahlia McGrath had leaked the catch proffered by Rodrigues in the 44th over, while Annabel Sutherland sent down two wides in a wayward 48th over which cost Australia 15 runs. It was left to Amanjot Kaur to reap the rewards of Rodrigues’ staying power, striking the winning runs from Sophie Molineux’s 49th over with nine balls to spare.The historic run chase – the highest ever achieved in women’s ODI cricket – had hung in the balance after Harmanpreet Kaur miscued a pull to midwicket in the 36th over, out for a run-a-ball 89 with 105 runs still needed
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