Hinton Backs Musk in OpenAI Profit Shift Legal Fight

Published Date : 01/01/2025 

Geoffrey Hinton, the 'Godfather of Artificial Intelligence,' is backing Elon Musk in his legal efforts to prevent OpenAI from transitioning to a for-profit company. Hinton argues that OpenAI's non-profit status ensures a commitment to AI safety. 

Geoffrey Hinton, the prominent data scientist known as the 'Godfather of Artificial Intelligence,' is supporting Elon Musk in his legal battle to block OpenAI from transitioning to a for-profit entity.

Hinton, who won the 2024 Nobel Prize in Physics, is a leading figure in the development of artificial neural networks, the cornerstone of AI technology.

In a statement released on Monday by Encode, a youth-led advocacy group for human-centered AI, Hinton emphasized the importance of OpenAI's non-profit status.

'OpenAI was founded as an explicitly safety-focused non-profit and made a variety of safety-related promises in its charter,' Hinton stated.

'It received numerous tax and other benefits from its non-profit status.

Allowing it to tear all of that up when it becomes inconvenient sends a very bad message to other actors in the ecosystem.'

OpenAI was initially established as a non-profit research lab in 2015 by CEO Sam Altman, Elon Musk, and others.

In 2019, the company introduced a capped-profit model, still under the control of the non-profit entity.

However, OpenAI is now seeking to adopt a more traditional for-profit structure to raise capital more effectively, as stated in a recent blog post.

Musk, who severed ties with OpenAI in 2018, is challenging the company's move.

Encode, the advocacy group, filed an amicus brief in support of Musk's lawsuit.

'The restructuring would fundamentally undermine OpenAI’s commitment to prioritize public safety,' Encode wrote in a press release.

'The non-profit-controlled structure that OpenAI currently operates under provides essential governance guardrails that would be forfeited if control were transferred to a for-profit entity.'

Hinton, who spent over a decade at Google, has previously criticized OpenAI's safety measures.

In a press conference in October, Hinton commented that Altman is 'much less concerned with safety than with profits,' calling the situation 'unfortunate.' After leaving Google last year, Hinton warned about the potential dangers AI could pose to humanity, expressing regret for his role in developing the technology.

Musk is also contesting that OpenAI executives 'deceived' him into co-founding the company by exploiting his concerns about AI risks.

OpenAI claims that Musk had wanted the company to transition to a for-profit model as early as 2017.

Musk initially filed a lawsuit against OpenAI in February, accusing the company of violating its non-profit commitment by partnering with Microsoft.

He withdrew the lawsuit in June but refiled it in August.

Musk’s own startup, xAI, is structured as a public benefit corporation, a for-profit entity with social and environmental goals.

This is the same model OpenAI aims to adopt, as announced in a recent blog post. 

Frequently Asked Questions (FAQS):

Q: Why is Geoffrey Hinton supporting Elon Musk in this legal battle?

A: Geoffrey Hinton supports Elon Musk because he believes that OpenAI's non-profit status ensures a commitment to AI safety, which could be compromised if the company transitions to a for-profit structure.

Q: When was OpenAI founded, and what was its original purpose?

A: OpenAI was founded in 2015 as a non-profit research lab by CEO Sam Altman, Elon Musk, and others, with the primary goal of developing AI in a way that benefits humanity and prioritizes safety.

Q: What is the current dispute between Musk and OpenAI?

A: Musk is suing OpenAI to prevent it from transitioning to a for-profit structure, arguing that this move would undermine the company's commitment to AI safety and public benefit.

Q: What is Encode's role in this legal battle?

A: Encode is a youth-led advocacy group that supports human-centered AI. They filed an amicus brief in support of Musk's lawsuit, arguing that OpenAI's non-profit structure is essential for maintaining safety and ethical standards.

Q: What is the difference between a non-profit and a for-profit structure in the context of AI companies?

A: A non-profit structure focuses on public benefit and safety, often receiving tax benefits and other incentives. A for-profit structure, on the other hand, is driven by generating financial returns, which could potentially lead to prioritizing profit over safety and ethical considerations. 

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