Governance AI News & Updates

OpenAI Maintains Nonprofit Control Despite Earlier For-Profit Conversion Plans

OpenAI has reversed its previous plan to convert entirely to a for-profit structure, announcing that its nonprofit division will retain control over its business operations which will transition to a public benefit corporation (PBC). The decision comes after engagement with the Attorneys General of Delaware and California, and amidst opposition including a lawsuit from early investor Elon Musk who accused the company of abandoning its original nonprofit mission.

European Union Publishes Guidelines on AI System Classification Under New AI Act

The European Union has released non-binding guidance to help determine which systems qualify as AI under its recently implemented AI Act. The guidance acknowledges that no exhaustive classification is possible and that the document will evolve as new questions and use cases emerge, with companies facing potential fines of up to 7% of global annual turnover for non-compliance.