Guiding Questions

• How do hybrid organizational structures (like OpenAI's nonprofit/for-profit model) address the unique challenges of AI development, and what are their advantages and limitations compared to traditional corporate forms?
• How should companies balance shareholder interests with broader stakeholder concerns in AI development and deployment, particularly when these interests may conflict?

• What role can corporate governance mechanisms play in ensuring responsible AI development, and how do different organizational structures affect oversight and accountability?
  
  

Guest

Michael Peregrine

Required

Facts

• OpenAI, Our Structure, OpenAI (2024)
• Aditya Soni, Arsheeya Bajwa & Krystal Hu, OpenAI Outlines New For-Profit Structure in Bid to Stay Ahead in Costly AI Race, AOL (Dec. 27, 2024)

Law

• "Corporations and Corporate Governance," in Business Law and the Legal Environment, Saylor Academy (last accessed Jan. 6, 2025).
• "Rights of Shareholders," in Business Law and the Legal Environment, Saylor Academy (last accessed Jan. 6, 2025).
• Exemption Requirements - 501(c)(3) Organizations, IRS (Aug. 19, 2024).
• Jesse Finfrock, OpenAI's Example Is Lesson for Nonprofit Tandem Entity Formation, Bloomberg L. News (Jan. 4, 2024).

Application

• Brett McDonnell & Alan Z. Rozenshtein, The Promise and Perils of Nontraditional Corporate AI Governance, LAWFARE (Oct. 1, 2024).
• [read beginning through “Looking forward”] Arnaud Cave, Niamh O’Brien & Andrea Hearon, Key Trends in AI Shareholder Proposals, FTI Consulting (2024).