How to Fix OpenAI's Governance to Stop Another AI Meltdown

OpenAI's unusual corporate structure recently led to chaos and governance issues at the influential AI company. The nonprofit aims to develop artificial intelligence that benefits humanity, but it also has a for-profit arm to pursue returns for investors like Microsoft. This arrangement imploded recently, revealing weaknesses in OpenAI's ability to balance its lofty mission with the demands of running a startup.

To stabilize its governance, OpenAI could follow the example of Mozilla and create separate boards for its nonprofit and for-profit operations. This would give major backers like Microsoft more of a voice without compromising OpenAI's humanitarian goals. Mozilla's nonprofit board focuses on open-source principles and social impact, while its for-profit boards prioritize business growth and innovation.

Beyond structural changes, OpenAI needs to improve basics like ensuring accurate disclosures in public filings, establishing formal rules for board member qualifications and succession planning, and implementing clear policies on internal communications and conflicts of interest. Recent disputes between ousted CEO Sam Altman and board members likely contributed to the crisis. Altman's varied commitments and efforts to raise money for new startups while leading OpenAI also concerned some.

The stakes are incredibly high for OpenAI to fix its governance. With its goal of developing AI as capable as humans, how OpenAI handles its internal structure could determine who benefits and who suffers from the rollout of transformative technologies like ChatGPT. The company's meltdown revealed cracks in its ability to responsibly guide AI development. Strengthening its governance is crucial for OpenAI to achieve its mission of developing artificial intelligence that helps rather than harms humanity.