The Declining Openness of OpenAI: A Closer Look

OpenAI, a prominent artificial intelligence research organization, was founded on the principles of transparency and openness. However, recent developments suggest a significant decline in its commitment to these fundamental values. WIRED’s investigation into OpenAI’s activities, particularly the request for documents related to the organization’s financial and operational details, revealed a growing trend of secrecy and limited disclosure.

OpenAI, originally known for its comprehensive public disclosures regarding its AI inventions, has become increasingly guarded in sharing technical details and data related to its most renowned tool, ChatGPT. While OpenAI maintains that it fulfills the necessary disclosure requirements mandated by the IRS and California’s attorney general, the organization’s commitment to openness has undoubtedly diminished over time. The creation of a for-profit subsidiary by OpenAI in 2019 marked a critical turning point, enabling the organization to secure external investments and establish ties with industry giant Microsoft. With this change, OpenAI’s financial transparency became shrouded in secrecy, leading some, including co-founder Elon Musk, to question the organization’s commitment to open-source principles.

The Nonprofit vs. For-Profit Dilemma

OpenAI’s original nonprofit organization harbors ultimate control over the technology and activities of the entire organization. While nonprofit organizations typically share annual reports with the IRS, OpenAI’s continuous commitment to making additional documents, such as bylaws and conflict of interest policies, accessible to the public appeared uncommon in the sector. Rick Cohen, the chief operating and communications officer for the National Council of Nonprofits, stated that it is not standard practice for nonprofits to disclose their governing documents or internal policies. However, OpenAI’s annual IRS filings consistently stated that these documents were available upon request, raising questions about the extent of their accessibility and actual transparency.

In December, WIRED made a comprehensive request to OpenAI for its governing documents, conflict rules, and financial statements. Unfortunately, the organization proved unresponsive, prompting WIRED to visit OpenAI’s San Francisco headquarters in person. Dissatisfyingly, the receptionist refused to grant access to the requested documents, leaving WIRED with no further explanation. It is worth noting that OpenAI’s IRS filing for 2023, reflecting the organization’s change of policy, is not due until later this year. Nonetheless, US tax law mandates that nonprofits make their annual reports, such as Form 990s, readily available for inspection either on their websites or at their offices upon request. Although OpenAI does not publish these reports on its website, it failed to provide them promptly when WIRED visited in person.

It is crucial to emphasize that OpenAI has not faced any accusations of wrongdoing regarding its lack of transparency. Felix, a spokesperson for OpenAI, asserts that the organization’s reports are available online through governmental and research databases, suggesting an alternate means of accessing the information. However, this reaffirms the concern that OpenAI’s declining openness and limited disclosure undermine its original commitment to transparency and transparency.

OpenAI’s dwindling commitment to openness and transparency poses significant questions about its alignment with its founding principles. While the creation of a for-profit subsidiary and strategic partnerships may have fueled the organization’s growth, they have seemingly come at the expense of transparency. OpenAI’s reluctance to share comprehensive financial and operational details raises concerns about accountability within the organization and invites further scrutiny. As technology evolves and artificial intelligence becomes an increasingly integral part of our lives, it is essential that organizations like OpenAI demonstrate unwavering dedication to transparency to maintain public trust and confidence.


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