Encode, a nonprofit focused on AI safety, has filed an amicus brief supporting Elon Musk’s effort to block OpenAI’s transition to a for-profit entity. Encode argues that this shift undermines OpenAI’s original mission to develop transformative technology for public benefit.
Founded as a nonprofit in 2015, OpenAI adopted a hybrid structure in 2019, introducing a capped-profit model to attract investments. The company now plans to transition its for-profit arm into a Delaware Public Benefit Corporation (PBC). While OpenAI claims the mission remains intact, critics, including Musk, allege the move prioritizes financial returns over safety and accessibility.
Encode’s brief highlights concerns that a PBC would prioritize stockholder interests over public safety. It also notes that OpenAI’s nonprofit board would lose its authority to cancel investor equity for safety concerns. Meta has similarly opposed the restructuring, warning of significant risks to Silicon Valley’s ecosystem.
Encode, founded in 2020 by Sneha Revanur, emphasizes youth advocacy in AI governance and has contributed to initiatives like the White House’s AI Bill of Rights. The organization contends that relinquishing nonprofit control of AGI development poses significant public risks.
