OpenAI is not dying

The discord at OpenAI is the result of competing priorities

There’s lots of hand wringing about what’s happening at OpenAI. I think the explanation for what’s happening is fairly simple and prosaic: there is tension between those who want to pursue AI research and those who want to build a business. And the latter group is winning now, with its announcement that it will transition from a non-profit with a capped profit structure bolted onto it to a more conventional for profit B corp.

None of this augurs its demise, despite what many breathless pundits are claiming. It’s not uncommon for organizations, especially ones working on transformative technologies, to experience tensions between their research-first origins and pressures to commercialize. OpenAI’s transition toward a more conventional for profit structure reflects a shift from prioritizing speculative research, which often aligns with long-term and uncertain outcomes, toward building scalable products that can generate immediate revenue.

The tension between research and commercialization has always existed in technology. When investors pour capital into companies like OpenAI, they expect returns that align with for profit strategies. Their transition to a B Corp structure recognizes that reality. It allows the company to continue pursuing its mission, but under conditions that accommodate market demands. It’s a pragmatic move rather than an ideological shift.

As long as OpenAI’s products attract paying customers, and provide real world use cases, commercialization will solidify its position. The existential angst coming from those aligned with the research-first perspective is understandable, but it doesn’t mean OpenAI is veering off the rails. There is a balance to be struck between pursuing a long-term vision (research) and the need to drive sustainable growth (business). What’s happening at OpenAI seems more like a natural evolution than an existential crisis.