Bite-Sized Business Law

The Profit Problem: An Open Letter to OpenAI


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Should profit be part of the calculation in developing safe AI? The future of artificial general intelligence (“AGI”) hinges on how well we balance innovation with safety. In this episode, Tyler Whitmer, founder, president, and CEO of Legal Advocates for Safe Science and Technology (LASST), talks about his work to protect OpenAI’s original mission to ensure AGI is safe and benefits all of humanity. Drawing on his background as a commercial litigator and nonprofit leader, Tyler explains why OpenAI’s unique corporate structure was designed to safeguard against profit motives and how a proposed restructuring could weaken those protections. He outlines the legal and ethical risks of shifting control away from the nonprofit, the coalition effort that led to an open letter to California and Delaware attorneys general, and what changes are still needed to keep mission ahead of money. The conversation also explores broader concerns about the democratization of harmful technologies, the role of legal advocacy in tech safety, and advice for lawyers who want to work in this critical space. Listen in for a timely look at the intersection between law, technology, and the public interest!

Key Points From This Episode:

  • Tyler’s path from partner at Quinn Emanuel to nonprofit AI safety advocate.
  • The founding of LASST to address potential catastrophic tech risks through legal advocacy.
  • How LASST uses litigation tracking and amicus briefs to influence court decisions.
  • OpenAI’s charitable mission as a 501(c)(3) to ensure AGI is safe and benefits all of humanity.
  • An outline of the concerns over OpenAI’s shift from mission-focused to profit-driven goals.
  • What makes OpenAI’s original nonprofit-over-for-profit structure so unique.
  • Details of the proposed restructuring and its potential mission risks.
  • A breakdown of the open letter urging AGs to protect OpenAI’s charitable mission.
  • Unpacking legal concerns for restructuring under California law and Delaware fiduciary duty.
  • How OpenAI has revised its plans and the remaining questions on control and safeguards.
  • Risks of removing investor return caps, including weakening mission enforceability.
  • Tyler’s optimism about AI’s benefits, alongside concerns over its potential for grave harm.
  • Advice for young lawyers entering the evolving AI and legal landscape.

Links Mentioned in Today’s Episode:

Tyler Whitmer
Tyler Whitmer on LinkedIn
Legal Advocates for Safe Science and Technology (LASST)

Encode

Encode Amicus Brief
'Not for Private Gain: An Open Letter to OpenAI' | April 2025

'Not for Private Gain: An Open Letter to OpenAI Update' | May 2025

Fordham University School of Law Corporate Law Center


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Bite-Sized Business LawBy The Corporate Law Center at Fordham University School of Law

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