Corporate Governance

Kevin Frazier

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).

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