'I don't want to be sued': OpenAI CEO Sam Altman rules out IPO plans due to 'strange' company structure

Microsoft-backed OpenAI, the company responsible for developing ChatGPT, has announced that it has no immediate plans to go public, according to Chief Executive Sam Altman. Altman made this statement during a conference in Abu Dhabi, where he emphasised the potential decision-making challenges that could arise when superintelligence is achieved.

Altman stated, "When we develop superintelligence, we are likely to make some decisions that most investors would look at very strangely." He further expressed his lack of interest in taking OpenAI public, explaining, "I don't want to be sued by the public market, Wall Street, etc., so no, not that interested."

To date, OpenAI has raised an impressive $10 billion from Microsoft, valuing the company at nearly $30 billion. These funds have been primarily invested in expanding OpenAI's computing capacity and advancing its artificial intelligence capabilities.

Altman highlighted OpenAI's unique organisational structure, stating, "We have a very strange structure. We have this cap-to-profit thing." Initially established as a non-profit organisation, OpenAI later evolved into a hybrid "capped-profit" company that allowed for external funding while ensuring the continued benefits of the original non-profit mission.

Throughout the development of artificial intelligence technologies, Altman and numerous prominent scientists involved in their creation and promotion have warned of the potential risks posed by AI, particularly generative AI models like ChatGPT. Some have even likened these risks to those of extinction-level events and have called for appropriate regulations.

Altman has been on a whirlwind tour across the globe, engaging with heads of state from various countries. Recently, he visited the United Arab Emirates and has plans to travel to Qatar, India, and South Korea.

During his time in Europe, Altman sparked controversy by suggesting that OpenAI might consider leaving the region if compliance with proposed AI regulations becomes too challenging. This statement garnered criticism from several lawmakers, including EU industry chief Thierry Breton. However, OpenAI later reversed its stance, with Altman clarifying, "We did not threaten to leave the EU. We expect to be able to comply. There's still more clarity we are waiting for on the EU AI Act, but we are very excited to operate in Europe."

The European Union is currently working on a comprehensive set of laws to govern AI, including provisions that would require companies using AI tools like ChatGPT to disclose copyrighted material used in training their systems. However, OpenAI has not disclosed such data for its latest AI model, GPT-4.

Despite the controversy, Altman received support from EU tech chief Margrethe Vestager, who interpreted his comments not as a threat but as a commitment to doing his best. Altman further emphasised the rapid growth of AI, stating, "The number one thing about this technology that people don't understand is that in a few years, GPT-4 is going to look like a little toy that was not that impressive. There will be images, audio, video, text, computer programming, all together."

Many experts have raised concerns about potential job displacement due to AI, particularly in sectors such as transportation, logistics, office support and administration, production, services, and retail. Altman acknowledged that the jobs of the future would differ significantly from those of today but also emphasised the presence of new opportunities in this evolving landscape.

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