Source: Lawfare

This article explores the potential advantages and challenges of nontraditional corporate governance models, such as nonprofit structures, in the development and regulation of artificial intelligence (AI). The discussion is framed around the recent governance issues at OpenAI, where a boardroom coup demonstrated both the strengths and weaknesses of nonprofit governance in managing AI labs. The core question is whether nonprofit structures, which prioritize social goals over profit, can effectively mitigate the risks associated with AI development without stifling innovation.

The article examines how nonprofit AI labs like OpenAI and Anthropic have adopted hybrid governance models that combine nonprofit oversight with for-profit investment. While these models aim to balance the need for financial capital with a commitment to AI safety, they face significant challenges. One major concern is the difficulty of attracting investment without the promise of high returns, which could slow down AI development and limit innovation.

The discussion also covers the broader implications of nonprofit governance in AI, including its potential to address the externalities of AI development, such as job displacement and disinformation. However, the article warns that nonprofit models may not be immune to the pressures of commercialization and could risk becoming too cautious, limiting their ability to capitalize on the benefits of AI.