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OpenAI to Form Advisory Group for Nonprofit Guidance

ByHilary Ong

Apr 7, 2025

OpenAI to Form Advisory Group for Nonprofit Guidance

OpenAI, founded in 2015 as a nonprofit research lab before fully re-incorporating this year as a capped-profit company, is making big moves to direct its philanthropic efforts. The organization recently made the transition to a for-profit structure, but they continue to function with a nonprofit organization. They want to convene a diverse panel of experts. This initiative seeks to ensure that OpenAI’s philanthropic resources are effectively allocated to areas of health, science, education, and public services.

The Need for Philanthropic Engagement

OpenAI knows that it will need to be engaged with the philanthropic community. That’s why they made the decision to create this advisory group. The Board of Directors is acutely aware that the most valuable guidance we get is found in the experience of working professionals. These viewpoints should inform how OpenAI rolls out its history-making resources. OpenAI has long had the goal of taking on outside investments from venture capitalists and companies like Microsoft to achieve this aim.

The new collaborative will continue to work to solicit input from leaders and constituents in the fields mentioned above. They’ll be looking most closely at California, home to OpenAI’s headquarters. As OpenAI stated in a recent blog post, that’s exactly why they formed the coalition. They continued, “The Board agrees that we must meaningfully involve the philanthropic community and those with the closest ties to the work in discussions to help inform how OpenAI’s philanthropy can best deploy its potentially historic resources.

Look for the announcement of this expert group around April. For the next 90 days, they will present their findings to OpenAI’s board of directors. That timeline is especially important. The new company is under enormous pressure, not just from their supporters, but particularly from their funders in SoftBank that could take back billions in promised capital if OpenAI doesn’t demonstrate enough progress by the end of this year.

OpenAI’s change is a fascinating case that has to balance its nonprofit history with its current for-profit circumstances. Scatec’s approach is based on a capped profit model — for investors, as well as employees. This strategy allows for financial sustainability while honoring its original intent. The board’s ongoing work will be informed by what we learn from this advisory group’s work. This will greatly assist in strengthening the nonprofit element prior to the end of 2025.

OpenAI’s mission is to ensure that its technological breakthroughs benefit humanity as a whole. This commitment is in keeping with the administration’s robust attention to health, science, education, and public services. By engaging with experts in these fields, OpenAI aims to ensure that its philanthropic efforts are both impactful and aligned with community needs.

What The Author Thinks

OpenAI’s transition into a capped-profit model while maintaining a strong focus on philanthropy showcases a pragmatic approach to balancing financial sustainability with its original nonprofit vision. This initiative, which actively seeks input from experts in critical fields like health and education, is a crucial step to ensure that their technological advancements benefit the broader community in a meaningful and impactful way.


Featured image credit: Heute

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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