OpenAI, a prominent artificial intelligence research organization, was once known for its commitment to transparency. It openly shared detailed information about its AI inventions and made its research freely available to the public. However, recent developments indicate a significant decline in openness at OpenAI, raising concerns among stakeholders and the broader AI community.
Recently, Wired requested access to the documents promised in OpenAI’s IRS filings, aiming to gain insights into its operations and financial details. Unfortunately, the request was denied, and OpenAI’s counsel for its nonprofit asserted a new policy of withholding such documents. This denial is in line with a broader trend of reduced transparency within the organization, as OpenAI has become more guarded about the technical details and data behind its flagship tool, ChatGPT.
OpenAI’s declining openness became more pronounced after 2019, a pivotal year that saw the establishment of a for-profit subsidiary to facilitate AI development and attract external investments. This move allowed OpenAI to secure Microsoft’s support and financial backing, despite Microsoft’s status as one of the tech giants OpenAI originally aimed to challenge. As a consequence, OpenAI’s finances became shrouded in secrecy, and its commitment to transparency appeared to waver.
Elon Musk, a co-founder of OpenAI who later became a competitor, offered a scathing critique of the organization’s shift towards closed-source practices. At a New York Times event in November, Musk commented that OpenAI should be labeled as “Super-Closed-Source-for-Maximum-Profit-AI.” Musk’s remark highlights the concerns surrounding OpenAI’s trajectory and its departure from its initial vision of openness and accessibility.
OpenAI’s original nonprofit organization and its board still retain ultimate control over the organization’s activities and technological advancements. Nonprofits in the United States, including OpenAI, are required to share their annual reports with the IRS and state whether additional documents, such as bylaws and conflict of interest policies, are available to the public upon request. While some nonprofits comply with this practice, it is not the standard approach across the sector.
For seven years, OpenAI consistently stated in its annual IRS filings that it would make its submissions, as well as other relevant documents, available upon request. However, it remains unclear whether anyone ever took OpenAI up on this invitation. In December, Wired attempted to access OpenAI’s governing documents, conflict rules, and financial statements in person at its San Francisco headquarters. Unfortunately, the receptionist refused the request, illustrating the organization’s reluctance to share information.
To ensure transparency and accountability, US tax law mandates that nonprofits make their annual reports (Form 990s) available for public inspection at their offices on the same day they are requested. Although OpenAI does not post its reports on its website, it failed to provide them when Wired visited its headquarters. It is important to note that OpenAI has not been implicated in any wrongdoing, and the organization claims its reports are available online through government and research databases.
The decline in openness at OpenAI raises valid concerns within the AI community and among stakeholders. Transparency is crucial, especially for organizations working on cutting-edge AI technologies that have the potential to shape society’s future. By withholding crucial information, OpenAI risks eroding trust and limiting the ability of external stakeholders to assess its safety protocols, research methodologies, and potential biases.
To rebuild trust and reinforce its commitment to transparency, OpenAI should consider adopting a more open approach. Proactively sharing financial information, publishing research methodologies, and providing access to governance documents would demonstrate openness and foster collaboration with external stakeholders. By doing so, OpenAI can regain its position as a leader in responsible AI development while inspiring trust and confidence in its work.
OpenAI’s decline in openness has been a cause for concern, undermining its initial commitment to transparency. As the organization continues to shape the future of AI, it must navigate the delicate balance between proprietary interests and the broader societal need for accountable and transparent AI development. OpenAI’s ability to address these concerns will determine its role and impact in the ever-evolving AI landscape.
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