OpenAI must remain under nonprofit control due to the far-reaching impact of the artificial intelligence it is developing, according to a new report by an independent advisory commission released Thursday.

The commission, formed to provide recommendations on OpenAI’s nonprofit governance, emphasized that AI is “too consequential” to be managed solely by corporate interests. Daniel Zingale, chair of the advisory body and a former adviser to three California governors, said the nonprofit structure enables broader public involvement.

“We believe this work is too important to leave to the private or even government sectors alone,” Zingale said. “The nonprofit model creates a space for democratic participation.”

While non-binding, the recommendations lay out a framework for how OpenAI could be held accountable in the future. The group, which includes renowned labor organizer Dolores Huerta, advocated for greater public involvement in how AI systems are developed and governed—especially for communities already affected by the technology.

OpenAI, founded in 2015 as a nonprofit research lab, has since transitioned to a for-profit model and now carries a $300 billion valuation. The move has faced scrutiny following the brief ouster of CEO Sam Altman in late 2023 and legal challenges from regulatory bodies and Elon Musk, an early backer of the company.

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OpenAI recently proposed converting its for-profit arm into a public benefit corporation. While the nonprofit will hold shares in the new entity, details remain unclear.

The commission called on OpenAI to allocate significant funding to the nonprofit to support public interest projects, including AI education, cultural programs, and economic opportunity initiatives. It also proposed creating a rapid-response fund and ensuring that the nonprofit remains led by a human being—symbolic of the current era's challenges.

“There’s a strong desire among the public to better understand AI and who’s making the decisions,” said Zingale. “OpenAI should be known, seen, and shaped by the people it claims to serve.”

Source: Agency