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WASHINGTON, D.C. — ChatGPT-maker OpenAI laid out plans on Friday for a new corporate structure shifting away from control by a nonprofit an issue of contention for the artificial intelligence trailblazer.OpenAI was founded as a nonprofit in 2015 and has since switched to a "capped" for-profit enterprise allowing for a limited level of money making.But it has been seeking to become a for-profit public benefit corporation (PBC), which could attract more investment.In a blog post, the company said it plans to restructure as a PBC, which "requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decision-making.""It will enable us to raise the necessary capital with conventional terms like others in this space," OpenAI added.It said that it needs to raise more capital than imagined, citing the hundreds and billions of dollars that major firms are now putting into artificial intelligence development."Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness," OpenAI said.Currently, its structure does not allow the board to directly consider the interests of those who would finance its mission.The structure also "does not enable the nonprofit to easily do more than control the for-profit," the company said.With the restructuring, the PBC will control OpenAI's operations and business.Its nonprofit arm will build up a team to pursue charitable initiatives in areas like health care.OpenAI is under high scrutiny as an artificial intelligence powerhouse, reaching a staggering $157 billion valuation in recent times.The company, led by Sam Altman, has become one of the most successful startups in Silicon Valley history propelled to headlines in 2022 when it released ChatGPT, its generative AI chatbot.But its corporate set-up imploded in late 2023 when the board fired Altman out-of-the-blue. Staff rebelled and Altman was eventually reinstated, while those involved in his ouster left the company.Alarmed by the situation, new investors have demanded that OpenAI become a more classic for-profit outfit within two years.Its restructuring efforts will likely face obstacles, with Elon Musk reportedly asking a US court to stop OpenAI from converting into a for-profit enterprise.

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05.01.25 04:15

by manilatimes.net

Fed officials say job not done on inflation

TWO Federal Reserve policymakers on Saturday said they felt the US central bank's job on taming inflation was not yet done, but also signaled they did not want to risk damaging the labor market as they try to finish that job.The remarks, from Governor Adriana Kugler and San Francisco Fed President Mary Daly, highlight the delicate balancing act facing US central bankers this year as they look to slow their pace of rate-cutting. The Fed lowered short-term rates by a full percentage point last year, to a current range of 4.25-4.50 percent.Inflation by the Fed's preferred measure is well down from its mid-2022 peak of around 7 percent, registering 2.4 percent in November. That's still above the Fed's 2-percent target and in December policymakers projected slower progress toward that goal than they had earlier anticipated."We are fully aware that we are not there yet — no one is popping champagne anywhere," Kugler said at the annual American Economic Association conference in San Francisco. "And at the same time... we want the unemployment rate to stay where it is" and not increase rapidly.In November, unemployment was 4.2 percent, consistent in both her and colleague Daly's view with maximum employment, the Fed's second goal alongside its price stability goal."At this point, I would not want to see further slowing in the labor market — maybe gradually moving around in bumps and chunks on a given month, but certainly not additional slowing in the labor market," said Daly, who was speaking on the same panel.The policymakers were not asked, nor did they volunteer their views, about the potential impact of incoming president Donald Trump's economic policies, including tariffs and tax cuts, which some have speculated could fuel growth and reignite inflation.

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