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Over 50 organizations call on California Attorney General Rob Bonta to protect up to $300 billion of OpenAI’s charitable assets from a for-profit takeover
Civic leaders ask the AG to halt OpenAI’s for-profit conversion until its charitable funds are back in nonprofit hands
Sacramento, CA – A powerful coalition of California’s leading civic and philanthropic institutions filed an administrative petition this morning urging Attorney General Rob Bonta to intervene in OpenAI’s for-profit conversion to protect the up to $300 billion in charitable assets OpenAI holds as a nonprofit for the public good.
More than fifty organizations signed onto the petition, which specifically requests that the Attorney General halt OpenAI’s for-profit conversion until he has: (1) calculated the full market value of OpenAI’s nonprofit assets; and (2) directed OpenAI to transfer the assessed value of its nonprofit assets to independent nonprofit entities committed to serving the public interest.
“Operating as a nonprofit may no longer suit OpenAI, but that does not mean it can walk away from its obligation to serve the public good,” said Fred Blackwell, CEO of the San Francisco Foundation, a member of the coalition. “It’s up to Attorney General Bonta to use his authority to prevent OpenAI from enriching shareholders and investors with over $300 billion in nonprofit assets intended for charitable purposes.”
OpenAI was founded in 2015 as a nonprofit dedicated to serving the public with the mission of developing artificial intelligence “for the benefit of humanity.” Under California law, nonprofits are considered charities—meaning their resources must be solely dedicated to advancing the public interest. As Attorney General of California, Rob Bonta is tasked with the primary responsibility of supervising charitable funds in the state. That means he can require OpenAI to transfer its billions of dollars in charitable assets to nonprofit organizations that will put the funds to use in service of the public.
“The California Wellness Foundation exists today because of the actions of forward-thinking Attorneys General who ensured that Californians, not wealthy shareholders, would benefit when nonprofit health care providers converted into for-profit companies in the 1990s,” said petition signatory Richard Tate, CEO of The California Wellness Foundation, which was established through a transfer of the charitable assets of HealthNet. “Attorney General Bonta now faces a similar opportunity with OpenAI. We are calling on him to intervene.”
“Imagine the good that could come of AG Bonta using his authority to safeguard OpenAI’s multi-billion dollar assets for the public – as intended,” said Teri Olle, Director of Economic Security California, a member of the coalition. “OpenAI’s original charge was to harness its world-changing, powerful technology for the benefit of all of humanity. As OpenAI eyes a conversion to a for-profit, it falls to AG Bonta to make sure the funds it amassed continue to serve the public interest – in California and beyond. ”
The groups that signed the petition include major foundations such The California Endowment, Omidyar Network, The Kapor Foundation, and the San Francisco Foundation; labor groups including the California Teamsters Public Affairs Council, UFCW Western States Council, AFSCME Local 3930 and United Domestic Workers; along with civic organizations such as PICO California, LatinoProsperity, Color of Change, the Economy Security Project, and the Tech Equity Collaborative.
“Our coalition unites diverse Californians across sectors and regions who share one goal: ensuring OpenAI’s nonprofit funds serve the public good,” said Orson Aguilar, CEO of LatinoProsperity and coalition member. “We hope AG Bonta will meet with us to understand why California communities need OpenAI held accountable to its charitable mission.”
Access the petition and view the complete list of signatories HERE.
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