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OpenAI was founded in December 2015 as a nonprofit organization (OpenAI, Inc.) by a group of prominent researchers and entrepreneurs, including Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman, and others. In its founding charter, OpenAI defined its mission around ensuring that artificial general intelligence (AGI) “benefits all of humanity.” The organization also emphasized the importance of prioritizing a “good outcome for all” over its own self-interest and described AI as something that should extend individual human wills and be broadly and evenly distributed. From the start, OpenAI’s original nonprofit mission was paired with an intention to collaborate openly with other institutions by making certain patents and research publicly available. However, as the organization evolved, it later restricted access to its most capable models for competitive and safety reasons. Overall, the founding mission framed OpenAI’s long-term goal as building leading research capacity to help ensure AGI is developed and used in ways that serve society broadly.
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In 2019, OpenAI transitioned from a nonprofit organization to a capped-profit structure to attract substantial investment and compete for talent in the artificial intelligence industry. The model limited investor returns to 100 times their investment while preserving the nonprofit’s formal control and mission of ensuring that artificial general intelligence benefits humanity. OpenAI created three entities: OpenAI LP, OpenAI GP LLC, and OpenAI Global, LLC. OpenAI LP served as the main holding company, while OpenAI Global, LLC operated as the capped-profit business and was partly owned by Microsoft. The nonprofit OpenAI, Inc. controlled OpenAI GP LLC, which in turn controlled the other entities. Microsoft invested $1 billion, and OpenAI migrated its services to Microsoft Azure. The restructuring enabled venture investment and employee equity compensation but drew criticism from observers who argued that it conflicted with OpenAI’s commitment to democratizing artificial intelligence.
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