OpenAI-LP: The Capped-Profit Transition
The OpenAI-LP was created as a "capped-profit" entity in March 2019, marking a significant evolution for OpenAI-Inc. This transition allowed the organization to seek billions of dollars in capital from investors like Microsoft while remaining legally bound to its mission of developing safe Artificial-General-Intelligence. The structure is unique in Silicon-Valley, as it limits the returns of its partners to ensure that the benefits of AI are not concentrated among a few wealthy individuals. This governance model was championed by Sam-Altman and Greg-Brockman.
By operating as a limited partnership, OpenAI-LP can hire world-class talent in the field of Machine-Learning by offering equity-like participation that was previously impossible under a non-profit status. For further details on the legal and financial motivations, refer to the OpenAI announcement. The organization continues to focus on AI-Ethics and AI-Safety as it scales its research efforts to build models like GPT-4.