OpenAI abandons plan to become for-profit company

OpenAI abandons plan to become for-profit company
OpenAI CEO Sam Altman speaks at a panel discussion on potentials, perspectives and challenges in the age of Artificial Intelligence (AI) at the Technical University (TU) in Berlin on February 7, 2025. (AFP)
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Updated 06 May 2025

OpenAI abandons plan to become for-profit company

OpenAI abandons plan to become for-profit company

SAN FRANCISCO: OpenAI CEO Sam Altman announced Monday that the company behind ChatGPT will continue to be run as a nonprofit, abandoning a contested plan to convert into a for-profit organization.
The structural issue had become a significant point of contention for the artificial intelligence (AI) pioneer, with major investors pushing for the change to better secure their returns.
AI safety advocates had expressed concerns about pursuing substantial profits from such powerful technology without the oversight of a nonprofit board of directors acting in society’s interest rather than for shareholder profits.
“OpenAI is not a normal company and never will be,” Altman wrote in an email to staff posted on the company’s website.
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” he added.
OpenAI was founded as a nonprofit in 2015 and later created a “capped” for-profit entity allowing limited profit-making to attract investors, with cloud computing giant Microsoft becoming the largest early backer.
This arrangement nearly collapsed in 2023 when the board unexpectedly fired Altman. Staff revolted, leading to Altman’s reinstatement while those responsible for his dismissal departed.
Alarmed by the instability, investors demanded OpenAI transition to a more traditional for-profit structure within two years.
Under its initial reform plan revealed last year, OpenAI would have become an outright for-profit public benefit corporation (PBC), reassuring investors considering the tens of billions of dollars necessary to fulfill the company’s ambitions.
Any status change, however, requires approval from state governments in California and Delaware, where the company is headquartered and registered, respectively.
The plan faced strong criticism from AI safety activists and co-founder Elon Musk, who sued the company he left in 2018, claiming the proposal violated its founding philosophy.
In the revised plan, OpenAI’s money-making arm will now be fully open to generate profits but, crucially, will remain under the nonprofit board’s supervision.
“We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone,” Altman said.
OpenAI’s major investors will likely have a say in this proposal, with Japanese investment giant SoftBank having made the change to being a for-profit a condition for their massive $30 billion investment announced on March 31.
In an official document, SoftBank stated its total investment could be reduced to $20 billion if OpenAI does not restructure into a for-profit entity by year-end.
The substantial cash injections are needed to cover OpenAI’s colossal computing requirements to build increasingly energy-intensive and complex AI models.
The company’s original vision did not contemplate “the needs for hundreds of billions of dollars of compute to train models and serve users,” Altman said.
SoftBank’s contribution in March represented the majority of the $40 billion raised in a funding round that valued the ChatGPT maker at $300 billion, marking the largest capital-raising event ever for a startup.
The company, led by Altman, has become one of Silicon Valley’s most successful startups, propelled to prominence in 2022 with the release of ChatGPT, its generative AI chatbot.


Putin urges Russia’s aerospace industry to develop rocket engines

Putin urges Russia’s aerospace industry to develop rocket engines
Updated 9 sec ago

Putin urges Russia’s aerospace industry to develop rocket engines

Putin urges Russia’s aerospace industry to develop rocket engines

President Vladimir Putin urged aerospace industry leaders on Friday to press on with efforts to develop booster rocket engines for space launch vehicles and build on Russia’s longstanding reputation as a leader in space technology.
Putin, who has spent the past week in China and the Russian far eastern port of Vladivostok, flew to the southern Russian city of Samara, where he met industry specialists and toured the Kuznetsov design bureau aircraft engine manufacturing plant.
Quoted by Russian news agencies, Putin said Russia remained a leading force in the development of the aerospace industry.
“It is important to consistently renew production capacity in terms of engines for booster rockets,” the agencies quoted Putin as saying late on Friday.
“And in doing so, we must not only meet our own current and future needs but also move actively on world markets and be successful competitors.”
Putin noted Russian success in developing innovations in terms of producing engines, particularly in the energy sector, despite the imposition of sanctions by Western countries linked to Moscow’s 2022 invasion of Ukraine.
“In conditions of restrictions from sanctions, we succeeded in a short period of time in developing a series of innovative engines for energy,” Putin was quoted as saying. “These are being actively used, including in terms of gas transport infrastructure.”
Putin called it “an extremely important theme,” particularly for the development of Russian gas exports, including the planned Power of Siberia 2 pipeline under discussion in China this week to bring Russian gas to China.
Putin praised the Power of Siberia 2 pipeline as beneficial to both sides. Russia proposed the route years ago, but the plan has gained urgency as it looks to Beijing as a customer to replace Europe, which is trying to reduce Russian energy supplies since the Russian invasion of its smaller neighbor.
Putin also pointed to the development of the PD-26 aircraft engine, saying it would allow for the development of military transports and wide-bodied passenger planes.
“The development of this project will allow for the modernization not only of military transport aircraft, but also opens up prospects for construction of a new generation of wide-bodied civil planes,” he was quoted as saying.


Trump says India and Russia appear ‘lost’ to ‘deepest, darkest China’

Trump says India and Russia appear ‘lost’ to ‘deepest, darkest China’
Updated 06 September 2025

Trump says India and Russia appear ‘lost’ to ‘deepest, darkest China’

Trump says India and Russia appear ‘lost’ to ‘deepest, darkest China’
  • Xi hosted more than 20 leaders of non-Western countries for the Shanghai Cooperation Organization (SCO) summit in the Chinese port city of Tianjin, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi

WASHINGTON: US President Donald Trump on Friday said India and Russia seem to have been “lost” to China after their leaders met with Chinese President Xi Jinping this week, expressing his annoyance at New Delhi and Moscow as Beijing pushes a new world order. “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” Trump wrote in a social media post accompanying a photo of the three leaders together at Xi’s summit in China. Later on Friday, however, he told reporters he didn’t think the US had lost India to China. “I don’t think we have,” he said. “I’ve been very disappointed that India would be buying so much oil, as you know, from Russia. And I let them know that.” Asked about Trump’s social media post, India’s foreign ministry told reporters in New Delhi that it had no comment. The Chinese foreign ministry did not immediately reply to a request for comment and representatives for the Kremlin could not be immediately reached.
Xi hosted more than 20 leaders of non-Western countries for the Shanghai Cooperation Organization (SCO) summit in the Chinese port city of Tianjin, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
Putin and Modi were seen holding hands at the summit as they walked toward Xi before all three men stood side by side. “I’ll always be friends with Modi,” Trump told reporters on Friday. “He’s a great prime minister. He’s great. I’ll always be friends, but I just don’t like what he’s doing at this particular moment. But India and the United States have a special relationship. There’s nothing to worry about. We just have moments on occasion.” Trump has chilled US-India ties amid trade tensions and other disputes. Trump this week said he was “very disappointed” in Putin but not worried about growing Russia-China ties.
Trump has been frustrated at his inability to convince Russia and Ukraine to reach an end to their war, more than three years after Russian forces invaded Ukraine.
He told reporters on Thursday night at the White House that he planned to talk to Putin soon. 

 


US sanctions Palestinian rights groups over ICC probe

US sanctions Palestinian rights groups over ICC probe
Updated 06 September 2025

US sanctions Palestinian rights groups over ICC probe

US sanctions Palestinian rights groups over ICC probe
  • In response, the three NGOS condemned the sanctions, saying in a joint statement that the United States had “chosen to safeguard and entrench Israel’s Zionist settler-colonial apartheid regime and its unlawful occupation”

WASHINGTON: The United States has imposed sanctions on three leading Palestinian NGOs, accusing them of supporting International Criminal Court efforts to prosecute Israeli nationals.
The move is the latest in Washington’s effort to hobble the ICC, which has sought arrest warrants for Israeli officials over alleged war crimes in Gaza. The court has also pursued cases against Hamas leaders.
Secretary of State Marco Rubio on Thursday designated Al-Haq, Al Mezan Center for Human Rights, and the Palestinian Center for Human Rights under an executive order targeting entities that assist ICC investigations into Israel.
“These entities have directly engaged in efforts by the International Criminal Court to investigate, arrest, detain, or prosecute Israeli nationals, without Israel’s consent,” Rubio said.
In response, the three NGOS condemned the sanctions, saying in a joint statement that the United States had “chosen to safeguard and entrench Israel’s Zionist settler-colonial apartheid regime and its unlawful occupation.”
They said the move was part of a “decades-long campaign by Israel and its allies to erase the Palestinian people and systematically deny their collective right to self-determination and return.”
The United States, Russia and Israel are among the nations that reject the ICC.
“We oppose the ICC’s politicized agenda, overreach, and disregard for the sovereignty of the United States and that of our allies,” Rubio said in a statement.
Last month, the United States imposed sanctions on two ICC judges and two prosecutors, including ones from allies France and Canada. In June, Rubio sanctioned four judges from the court.
“The United States will continue to respond with significant and tangible consequences to protect our troops, our sovereignty, and our allies from the ICC’s disregard for sovereignty,” Rubio warned.

- ‘Completely unacceptable’ -

UN Human Rights Chief Volker Turk called the latest US move “completely unacceptable.”
“For decades now, these NGOs have been performing vital human rights work, particularly on accountability for human rights violations,” Turk said in a statement.
“The sanctions will have a chilling effect not only on civil society in the occupied Palestinian territory and Israel, but potentially globally,” he added.
Amnesty International also condemned the new sanctions as a “deeply troubling and shameful assault on human rights and the global pursuit of justice.”
“These organizations carry out vital and courageous work, meticulously documenting human rights violations under the most horrifying conditions,” said Erika Guevara-Rosas, a senior director at Amnesty.
She accused the Trump administration of seeking to “dismantle the very foundation of international justice and shield Israel from accountability for its crimes.”
The ICC’s prosecution alleges Israeli Prime Minister Benjamin Netanyahu is responsible for war crimes and crimes against humanity in Israel’s offensive in Gaza, including by intentionally targeting civilians and using starvation as a method of war.
Israel launched the massive offensive in response to an unprecedented attack by Hamas against Israel on October 7, 2023, in which mostly civilians were killed.
The ICC has also sought the arrest of former Israeli defense minister Yoav Gallant and Hamas commander Mohammed Deif, who has since been confirmed killed by Israel.
 

 


OpenAI and other tech companies warned to improve chatbot safety

OpenAI and other tech companies warned to improve chatbot safety
Updated 06 September 2025

OpenAI and other tech companies warned to improve chatbot safety

OpenAI and other tech companies warned to improve chatbot safety

The attorneys general of California and Delaware on Friday warned OpenAI they have “serious concerns” about the safety of its flagship chatbot, ChatGPT, especially for children and teens.
The two state officials, who have unique powers to regulate nonprofits such as OpenAI, sent the letter to the company after a meeting with its legal team earlier this week in Wilmington, Delaware.
California AG Rob Bonta and Delaware AG Kathleen Jennings have spent months reviewing OpenAI’s plans to restructure its business, with an eye on “ensuring rigorous and robust oversight of OpenAI’s safety mission.”
But they said they were concerned by “deeply troubling reports of dangerous interactions between” chatbots and their users, including the “heartbreaking death by suicide of one young Californian after he had prolonged interactions with an OpenAI chatbot, as well as a similarly disturbing murder-suicide in Connecticut. Whatever safeguards were in place did not work.”
The parents of the 16-year-old California boy, who died in April, sued OpenAI and its CEO, Sam Altman, last month.
The chair of OpenAI’s board, Bret Taylor, said in a statement Friday that the company was “fully committed” to addressing the concerns raised by the attorneys general.
“We are heartbroken by these tragedies and our deepest sympathies are with the families,” Taylor said. “Safety is our highest priority and we’re working closely with policymakers around the world.”
Founded as a nonprofit with a safety-focused mission to build better-than-human artificial intelligence, OpenAI had recently sought to transfer more control to its for-profit arm from its nonprofit before dropping those plans in May after discussions with the offices of Bonta and Jennings and other nonprofit groups.
The two elected officials, both Democrats, have oversight of any such changes because OpenAI is incorporated in Delaware and operates out of California, where it has its headquarters in San Francisco.
After dropping its initial plans, OpenAI has been seeking the officials’ approval for a “recapitalization,” in which the nonprofit’s existing for-profit arm will convert into a public benefit corporation that has to consider the interests of both shareholders and the mission.
Bonta and Jennings wrote Friday of their “shared view” that OpenAI and the industry need better safety measures.
“The recent deaths are unacceptable,” they wrote. “They have rightly shaken the American public’s confidence in OpenAI and this industry. OpenAI – and the AI industry – must proactively and transparently ensure AI’s safe deployment. Doing so is mandated by OpenAI’s charitable mission, and will be required and enforced by our respective offices.”
The letter to OpenAI from the California and Delaware officials comes after a bipartisan group of 44 attorneys general warned the company and other tech firms last week of “grave concerns” about the safety of children interacting with AI chatbots that can respond with “sexually suggestive conversations and emotionally manipulative behavior.”
The attorneys general specifically called out Meta for chatbots that reportedly engaged in flirting and “romantic role-play” with children, saying they were alarmed that these chatbots “are engaging in conduct that appears to be prohibited by our respective criminal laws.”
Meta, the parent company of Facebook, Instagram and WhatsApp, declined to comment on the letter but recently rolled out new controls that aim to block its chatbots from talking with teens about self-harm, suicide, disordered eating and inappropriate romantic conversations, and instead directs them to expert resources. OpenAI also said it would roll out new parental controls, including a method to notify parents “when the system detects their teen is in a moment of acute distress.”
The attorneys general said the companies would be held accountable for harming children, noting that in the past, regulators had not moved swiftly to respond to the harms posed by new technologies.
“If you knowingly harm kids, you will answer for it,” the Aug. 25 letter ends.


Pentagon-funded research at colleges has aided the Chinese military, a House GOP report says

Pentagon-funded research at colleges has aided the Chinese military, a House GOP report says
Updated 06 September 2025

Pentagon-funded research at colleges has aided the Chinese military, a House GOP report says

Pentagon-funded research at colleges has aided the Chinese military, a House GOP report says
  • The new report focuses more narrowly on the Defense Department and its billions of dollars in annual research funding.

WASHINGTON: Over a recent two-year period, the Pentagon funded hundreds of projects done in collaboration with universities in China and institutes linked to that nation’s defense industry, including many blacklisted by the US government for working with the Chinese military, a congressional investigation has found.
The report, released Friday by House Republicans on the Select Committee on the Chinese Communist Party, argues the projects have allowed China to exploit US research partnerships for military gains while the two countries are locked in a tech and arms rivalry.
“American taxpayer dollars should be used to defend the nation — not strengthen its foremost strategic competitor,” Republicans wrote in the report.
“Failing to safeguard American research from hostile foreign exploitation will continue to erode US technological dominance and place our national defense capabilities at risk,” it said.
The Pentagon and didn’t immediately respond to an Associated Press request for comment.
The congressional report said some officials at the Defense Department argued research should remain open as long as it is “neither controlled nor classified.”
The report makes several recommendations to scale back US research collaboration with China. It also backs new legislation proposed by the committee’s chairman, Rep. John Moolenaar, R-Michigan. The bill would prohibit any Defense Department funding from going to projects done in collaboration with researchers affiliated with Chinese entities that the US government identifies as safety risks.
The Chinese Embassy on Friday called the report “groundless.” “We oppose it,” the embassy said.
Beijing has in the past said science and technological cooperation between the two countries is mutually beneficial and helps them cope with global challenges.
Republicans say the joint research could have military applications
The 80-page report builds on the committee’s findings last year that partnerships between US and Chinese universities over the past decade allowed hundreds of millions of dollars in federal funding to help Beijing develop critical technology. Amid pressure from Republicans, several US universities have ended their joint programs with Chinese schools in recent years.
The new report focuses more narrowly on the Defense Department and its billions of dollars in annual research funding.
The committee’s investigation identified 1,400 research papers published between June 2023 and June 2025 that acknowledged support from the Pentagon and were done in collaboration with Chinese partners. The publications were funded by some 700 defense grants worth more than $2.5 billion. Of the 1,400 publications, more than half involved organizations affiliated with China’s defense research and industrial base.
Dozens of those organizations were flagged for potential security concerns on US government lists, though federal law does not prohibit research collaborations with them. The Defense Department money supported research in fields including hypersonic technology, semiconductors, artificial intelligence, advanced materials and next-generation propulsion.
Many of the projects have clear military applications, according to the report.
In one case, a geophysicist at Carnegie Science, a research institution in Washington, worked extensively on Pentagon-backed research while holding appointments at the Chinese Academy of Sciences and the Hefei Institute of Physical Sciences.
The scientist, who has done research on high-energy materials, nitrogen and high-pressure physics — all of which are relevant to nuclear weapons development — has been honored in China for his work to advance the country’s national development goals, the report said. It called the case “a deeply troubling example” of how Beijing can leverage US taxpayer-funded research to further its weapons development.
In a statement, Carnegie Science said it complies with all US laws. “The work cited was fundamental research, publicly available, and entirely unclassified. This research focused on basic properties of matter related to planetary science,” the institute said.
Carnegie Science also disputed the report’s assertion that the work was funded by the Pentagon, saying it came from the National Science Foundation’s Major Research Instrumentation program.
In another Pentagon-backed project, Arizona State University and the University of Texas partnered with researchers from Shanghai Jiao Tong University and Beihang University to study high-stakes decision-making in uncertain environments, which has direct applications for electronic warfare and cyber defense, the report said. The money came from the Office of Naval Research, the Army Research Office and the National Aeronautics and Space Administration.
The Shanghai university is under the supervision of a central Chinese agency tasked with developing defense technology, and Beihang University, in the capital city of Beijing, is linked to the People’s Liberation Army and known for its aerospace programs.
Calls for scaling back research collaborations
The report takes issue with Defense Department policies that do not explicitly forbid research partnerships with foreign institutions that appear on US government blacklists.
It makes more than a dozen recommendations, including a prohibition on any Pentagon research collaboration with entities that are on US blacklists or “known to be part of China’s defense research and industrial base.”
Moolenaar’s legislation includes a similar provision and proposes a ban on Defense Department funding for US universities that operate joint institutes with Chinese universities.
A senior Education Department official said the report “highlights the vulnerability of federally funded research to foreign infiltration on America’s campuses.” Under Secretary of Education Nicholas Kent said the findings reinforce the need for more transparency around US universities’ international ties, along with a “whole-of-government approach to safeguard against the malign influence of hostile foreign actors.”
House investigators said they are not seeking to end all academic and research collaborations with China but those with connections to the Chinese military and its research and industrial base.