OpenAI’s decision to transform into a for-profit company met with the reaction of many important names, especially Elon Musk.

Encode, a non-profit organisation focused on AI security, is taking action against this transformation. The group also supports California’s SB 1047 artificial intelligence security bill, which aims to regulate artificial intelligence. Despite support from Elon Musk, Geoffrey Hinton and even actor Mark Ruffalo, Governor Gavin Newsom vetoed the bill on 29 September 2024.

In a summary petition filed with the US District Court for the Northern District of California, Encode states that OpenAI and CEO Sam Altman’s claimthat they are‘developing a technology that is changing society’ should be taken seriously, and that OpenAI’s transformation into a for-profit organisation would prevent this technology from being developed and distributed in a safe and beneficial way for the public. Therefore, it says, OpenAI must remain a non-profit organisation in order to maintain its commitment.

Encode’s comments make the ongoing legal battle between Altman and Musk even more contentious. However, the names standing against the transformation of OpenAI into a for-profit organisation are not limited to these. Recently, Meta also asked the California Attorney General’s Office to block OpenAI’s decision to become a for-profit organisation, saying it could set a risky precedent for other initiatives.

In October, it was reported that OpenAI had received $6.6 billion in financing support, valuing the company at $157 billion. This financing has a very important position in terms of recognising that they need ‘more capital than imagined’ to develop advanced AI technologies.