The Rise of OpenAI: From Nonprofit to $90 Billion Powerhouse

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Empire of AI bestselling author Karen Hao was recently on TechCrunch’s Equity podcast. Whip smart as always, Kate touched on the unsustainable rocket ship that was OpenAI’s growth. OpenAI was originally featured by Hao back in 2020. Since then, it has quickly transformed from a nonprofit focused on developing AI to benefit humanity into a $90 billion AGI-chasing, profit-seeking luminary.

Originally established as a nonprofit organization, OpenAI’s original mission was all about creating AI in a safe and fair way. As this major organization started to get bigger, so did the agenda. Hao pointed out that the early ideals were quickly overshadowed by a familiar Silicon Valley ethos characterized by a relentless drive to “move fast, break things, and let scale be the measure of success.”

OpenAI’s internal structure reflects this shift. The resulting organization includes three separate “clans,” which Hao characterizes as acting on a “China competition” narrative. She makes the case that this narrative serves the interests of Silicon Valley. It’s predicated on the same arrogant tech fatalism that puts innovation over moral responsibility.

This empire model Hao argues that OpenAI’s method supports the same labor hoarding, resource plundering practices of past empires. This strategy not only centralizes huge amounts of political and economic power, but does so at a tremendous environmental price. OpenAI’s actions have serious implications that go well beyond the tech world. They raise important concerns about sustainability and the scope of ethical obligations in AI creation.

Hao’s insights shed some light on the difficulties of bending innovation to your will. In an industry where competition and profit margins drive innovation, this complexity is palpable. Her point of view raises a lot of pressing issues. She fears that the constant push for new technology would be detrimental to humanity and the earth.

“Move fast, break things, and let scale be the measure of success.” – Karen Hao

Rebecca Bellan, senior reporter at TechCrunch, continues to cover developments in artificial intelligence, while Theresa Loconsolo serves as an audio producer for the network’s flagship podcast, Equity. Look for the revamped show to come back this Friday! We’ll have a weekly news roundup that explores further, specifically into OpenAI and its ever-growing, outsized influence on the tech sector.

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