Anthropic, a leading AI lab, has designed its corporate structure to avoid the pitfalls encountered by its main competitor, OpenAI. The tech world watched in disbelief as OpenAI seemed to be on the verge of collapse, with its board firing CEO Sam Altman, a move that threatened the startup’s valuation of over $80 billion. This was possible due to OpenAI’s unique corporate structure, which Altman himself had helped design to insulate the development of powerful AI from market pressures.
However, this plan seemed to have backfired when Altman was reinstated as CEO after a pressure campaign from Microsoft, OpenAI’s main investor, venture capitalists, and OpenAI’s own staff. This led to the resignation of two of the three directors who had fired him. OpenAI then began to build a new board that seemed more suited to a high-growth company than a research lab concerned about the dangers of powerful AI.
In contrast, Anthropic, which also has an unconventional corporate structure, has structured itself to develop AI without the need to compromise in the pursuit of profits. Anthropic’s general counsel, Brian Israel, assured investors and clients that what happened at OpenAI could not happen at Anthropic.
The corporate governance of AI companies has significant implications for who controls what could be the 21st century’s most powerful technology. As AI becomes more powerful, the stakes are only getting higher. This was highlighted when two OpenAI leaders on the safety side of the company quit, stating that safety had taken a backseat to shiny products and that OpenAI needed a cultural change to develop advanced AI safely.
Read more: time.com