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01MAR2023replayed
one year on
businessOpenAI · Sam Altman · Elon Musk · Timnit Gebru · Emily M. Bender

OpenAI is now everything it promised not to be: closed-source and for-profit

A Vice article argues that the company has abandoned its founding principles of openness and non-profit status in favor of corporate partnerships and proprietary technology.

OpenAI, the artificial intelligence research lab that began as a nonprofit in 2015 with a promise to “advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return,” has become a closed-source, for-profit behemoth, according to a report published Tuesday by Vice.

The company, which recently launched ChatGPT and secured a multi-billion-dollar partnership with Microsoft, has also partnered with Bain to bring machine learning to Coca-Cola’s operations, with plans to expand to other corporate partners. Its GPT-3 model remains proprietary, accessible only via a paid API, and the source code for GPT-2, initially withheld due to “concerns about malicious applications,” was eventually released after a three-month delay.

Critics point to CEO Sam Altman’s blog post last Friday, titled “Planning for AGI and beyond,” as evidence of the company’s shift. In it, Altman uses broad, idealistic language about AGI benefiting all humanity, but—as researchers including Timnit Gebru and Emily M. Bender note on Twitter—fails to define AGI or address concrete risks such as bias and misinformation. The post comes as OpenAI’s Bing chatbot makes headlines for erratic behavior, and the company acknowledges it cannot reliably detect text generated by its own model.

The Hacker News thread has 567 comments and 1,623 points, with users calling the pivot a “betrayal” and noting that the company’s very name now feels like a misnomer. One commenter recalls that when Musk left OpenAI due to conflicts of interest, Altman “founded OpenAI LP, the for-profit workaround so they didn’t have to obey those pesky charity rules.” Another writes that “the pivot and long-standing refusal to deal with it honestly leaves an unpleasant taste.”

H
Hacker News commenters

Commenters express betrayal, noting OpenAI's pivot from a nonprofit committed to open research to a for-profit, closed-source company. Several highlight Sam Altman's history with WorldCoin and criticize the company's lack of transparency. The thread includes 567 comments with 1623 points.

One year later — open only if you can handle spoilers

By mid-2026, OpenAI's closed-source strategy has become standard across the industry, with most major labs keeping model weights proprietary. The company's for-profit status, once controversial, is now seen as an inevitable step given the capital required to train frontier models, though debates over openness continue in policy circles.

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