China accuses U.S. of cyber breaches at national time centre
China has accused the United States of stealing sensitive data and infiltrating its National Time Service Centre, warning that such breaches could hav...
OpenAI announced Monday that it will retain its nonprofit governance structure while proceeding with a major restructuring of its for-profit subsidiary to enable greater capital-raising capacity amid intensifying competition in the artificial intelligence sector.
The decision follows months of internal debate, public scrutiny, and legal challenges—including a prominent lawsuit from Elon Musk, who accused OpenAI of deviating from its original mission to develop AI for the benefit of humanity.
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” the company said in a blog post. OpenAI added that it would work closely with stakeholders including Microsoft, its largest investor, and newly appointed nonprofit commissioners to refine the structure.
For-Profit Reorganization Amid Funding Push
In December, OpenAI revealed plans to convert its for-profit operations into a public benefit corporation, a model designed to attract larger funding rounds without compromising a commitment to social impact. On Monday, OpenAI clarified that its nonprofit parent will retain control of the for-profit entity and become a significant shareholder in the restructured arm.
This hybrid structure aims to balance commercial viability with the company’s stated mission of ensuring AI serves public interest, a challenge that has drawn increasing scrutiny as OpenAI's valuation and influence have soared.
In March, OpenAI announced it was seeking to raise up to $40 billion in a new funding round led by Japan’s SoftBank Group, contingent on completing its for-profit transition by the end of 2025. That round would value the company at an estimated $300 billion, reflecting investor optimism in its pursuit of artificial general intelligence (AGI)—AI systems that surpass human-level intelligence.
Governance Under the Spotlight
OpenAI’s complex corporate structure, blending nonprofit oversight with commercial activity, came under intense scrutiny in November 2023, when the company’s board briefly removed CEO Sam Altman amid concerns over leadership and transparency. Altman was reinstated within five days after strong support from employees and backers.
The restructuring plan seeks to avoid future conflicts by reinforcing nonprofit oversight, while allowing the for-profit subsidiary to access the capital needed for AI model development, infrastructure, and global expansion.
Regulatory and Ethical Concerns
The company acknowledged concerns around asset allocation between its nonprofit and for-profit arms and said it would ensure transparency and fairness in managing resources. Critics have argued that OpenAI’s increasing commercial focus could undermine its founding commitment to developing safe and universally beneficial AI.
As the global AI race accelerates—with rivals such as Google DeepMind, Anthropic, xAI, and Meta making parallel strides—OpenAI’s structural realignment is viewed as critical for keeping pace while navigating the ethical and regulatory responsibilities unique to the field.
OpenAI said further details of the restructuring will be released following continued consultations with regulators and key partners.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
NASA has announced that it will reopen bidding for its flagship U.S. moon landing contract, citing mounting delays in Elon Musk’s SpaceX Starship lunar lander project.
China has accused the United States of stealing sensitive data and infiltrating its National Time Service Centre, warning that such breaches could have disrupted communications, financial systems, power supplies, and the international standard time network.
Chinese tech giants, including Alibaba-backed Ant Group (688688.SS) and e-commerce company JD.com have halted plans to issue stablecoins in Hong Kong after the government raised concerns about the increasing influence of privately controlled currencies, the Financial Times reported on Saturday.
Apple has pledged to increase its investment in China despite ongoing tensions between Washington and Beijing, CEO Tim Cook said during a meeting with China’s industry minister.
SpaceX launched its 11th Starship from Texas on 13 October, landing in the Indian Ocean ahead of testing an upgraded version for future moon and Mars missions.
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