971–980 of 1001 posts
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
OpenAI's charter is dead. I expect future boards to amend it.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
Microsoft doesn't have to send an employee to represent them on the board. They could ask Bill Gates.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
My guess is that the non-profit has never gotten this kind of scrutiny now and the new directors are going to want to get lawyers involved to cover their asses. Just imagine their positions when Sam Altman really does something worth firing. I think it was a real mistake to create OpenAI as a public charity and I would be hesitant to step into that mess. Imagine the fun when it tips into a private foundation status.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
At the end of the day, we still don't know what exactly happened and probably, never will. However, it seems clear there was a rift between Rapid Commercialization (Team Sam) and Upholding the Original Principles (Team Helen/Ilya). I think the tensions were brewing for quite a while, as it's evident from an article written even before GPT-3 [1]. > Over time, it has allowed a fierce competitiveness and mounting pressu…
Both sides of the rift in fact care a great deal about AI Safety. Sam himself helped draft the OpenAI charter and structure its governance which focuses on AI Safety and benefits to humanity. The main reason of the disagreement is the approach they deem best: * Sam and Greg appear to believe OpenAI should move toward AGI as fast as possible because the longer they wait, the more likely it would lead to the proliferat…
I disagree. Yes, Sam may have when it OpenAI was founded (unless it was just a ploy), but certainly now it's clear that the big companies are on a race to the top and safety or guardrails are mostly irrelevant.
The primary reason that the Anthropic team left OpenAI was over safety concerns.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
Major corporate boards are rife with "on paper" conflicts on interest - that's what happens when you want people with real management experience to sit on your board and act like responsible adults. This happens in every single industry and has nothing to do with tech or with OpenAI specifically. In practice, board bylaws and common sense mean that individuals recuse themselves as needed and don't do stupid shit.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
> There are obvious conflicts of interest here. There are almost always obvious conflicts of interest. In a normal startup, VCs have a legal responsibility to act in the interest of the common shares, but in practice, they overtly act in the interest of the preferred shares that their fund holds.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
Others have pointed out several reasons this isn't actually a problem (and that the premise itself is incorrect since "OpenAI" is not a charity), but one thing not mentioned: even if the MS-appointed board member is a MS employee, yes they will have a fiduciary duty to the organizations under the purview of the board, but unless they are also a board member of Microsoft (extraordinarily unlikely) they have no such fi…