OpenAI Faces IRS Complaint Over Alleged Tax Violations
The Midas Project, an artificial intelligence watchdog, has filed a complaint with the U.S. Internal Revenue Service (IRS) against OpenAI, creator of ChatGPT. The complaint alleges potential tax violations that could jeopardize OpenAI’s nonprofit status. According to the group, OpenAI’s structure—particularly CEO Sam Altman’s dual roles in both nonprofit and for-profit operations—creates conflicts of interest that may violate federal tax-exempt rules.
Examining the Conflicts of Interest
The complaint highlights how Altman’s position could enable personal gain at the nonprofit’s expense. It notes he may receive equity in a restructured OpenAI entity worth billions. The filing also identifies board members with financial ties, including chairman Bret Taylor, co-founder of Sierra AI, which resells OpenAI’s models.
OpenAI’s Nonprofit Mission in Question
Founded in 2015 as a nonprofit, OpenAI’s mission is to ensure artificial general intelligence benefits humanity. However, the complaint suggests recent restructuring attempts contradict this purpose. The Midas Project urges IRS investigation to safeguard OpenAI’s original vision.
Elon Musk’s Evolving Relationship with OpenAI
Co-founder Elon Musk initially pushed for OpenAI to become for-profit. He later sued, claiming the organization abandoned its nonprofit mission. In February, Musk-led investors offered $97.4 billion to acquire OpenAI, but Sam Altman rejected the bid.
Potential Implications for OpenAI’s Future
The IRS complaint could significantly impact OpenAI. If violations are found, the organization might lose its nonprofit status, potentially reshaping its AI development approach. The Midas Project stresses maintaining OpenAI’s commitment to public benefit as AI advances.
