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Tag: nonprofit

  • Can AI help humans understand animals and reconnect with nature? A nonprofit research lab thinks so

    Can AI help humans understand animals and reconnect with nature? A nonprofit research lab thinks so

    MONTREAL — Peeps trickle out of a soundproof chamber as its door opens. Female zebra finches are chattering away inside the microphone-lined box. The laboratory room sounds like a chorus of squeaky toys.

    “They’re probably talking about us a little bit,” says McGill University postdoctoral fellow Logan James.

    It’s unclear, of course, what they are saying. But James believes he is getting closer to deciphering their vocalizations through a partnership with the Earth Species Project. The nonprofit laboratory has drawn some of the technology industry’s wealthiest philanthropists — and they want to see more than just scientific progress. On top of breakthroughs in animal language, they expect improved interspecies understanding will foster greater appreciation for the planet in the face of climate change.

    The Earth Species Project hopes to decode other creatures’ communications with its pioneering artificial intelligence tools. The goal is not to build a “translator that will allow us to speak to other species,” Director of Impact Jane Lawton said. However, she added, “rudimentary dictionaries” for other animals are not only possible but could help craft better conservation strategies and reconnect humanity with often forgotten ecosystems.

    “We believe that by reminding people of the beauty, the sophistication, the intelligence that is resident in other species and in nature as a whole, we can start to, kind of, almost repair that relationship,” Lawton said.

    At McGill University, the technology generates specific calls during simulated conversations with live finches that help researchers isolate each unique noise. The computer processes calls in real time and responds with one of its own. Those recordings are then used to train the Berkeley, California-based research group’s audio language model for animal sounds.

    This ad hoc collaboration is only a glimpse into what ESP says will come. By 2030, Lawton said, it expects “really interesting insights into how other animals communicate.” Artificial intelligence advancements are expediting the research. New grants totaling $17 million will help hire engineers and at least double the size of the research team, which currently has roughly seven members. Over the next two years, Lawton said, the nonprofit’s researchers will select species that “might actually shift something” in people’s relationship with nature.

    Standing to benefit are animal groups threatened by habitat loss or human activity that could be better protected with better understandings of their languages. Existing collaborations aim to document the vocal repertoires — the distinct calls and their different contexts — of the Hawaiian crow and St. Lawrence River beluga whales.

    After spending more than two decades extinct in the wild, the crows have been reintroduced to their home of Maui. But some conservationists fear that critical vocabulary has faded in captivity. Lawton said the birds might need to relearn some “words” before they reenter their natural habitat in droves.

    In Canada’s St. Lawrence River, where shipping traffic imperils the marine mammals who feed there, the group’s scientists are exploring whether machine learning can categorize unlabeled calls from the remaining belugas. Perhaps, Lawton suggested, authorities could alert nearby vessels if they understood that certain sounds signaled the whales were about to surface.

    Big donors include LinkedIn co-founder Reid Hoffman, the family charity founded by late Microsoft co-founder Paul G. Allen and Laurene Powell Jobs’ Waverley Street Foundation. The latter aims to support “bottom-up” solutions to the “climate emergency.” At the root of that crisis, according to Waverley Street Foundation President Jared Blumenfeld, is the idea that humans deserve “dominion” over the world.

    Blumenfeld finds that ESP’s work is an important reminder that we are instead stewards of the planet.

    “This is not a silver bullet,” he said. “But it’s certainly part of a suite of things that can help transform how we view ourselves in relation to nature.”

    Gail Patricelli — an unaffiliated animal behavior professor at the University of California, Davis — remembers when such tools were just “pie in the sky.” Researchers previously spent months laboring to manually comb through terabytes of recordings and annotate calls.

    She said she’s seen an “exponential takeoff” the past few years in bioacoustics’ use of machine learning to accelerate that process. While she finds that ESP has the promise to make finer distinctions in existing “dictionaries,” especially for harder-to-reach species, she cautioned observers against attributing human characteristics to these animals.

    Considering this research’s high equipment and labor costs, Patricelli said she’s happy to see big philanthropists backing it. But she said the field shouldn’t rely too much on one funding source. Government support is still necessary, she noted, because ecosystem protection also requires that conservationists examine “unsexy” species that she expects get less attention than more charismatic ones. She also encouraged funders to consult scientists.

    “There’s a lot to learn and it’s very expensive,” she said. “That might not be a big deal to some of these donors but it’s very hard to come up with the money to do this.”

    The current work largely involves developing baseline technologies to do all this. A separate initiative has recently described the basic elements of how sperm whales might talk. But ESP is trying to be “species agnostic,” AI Research Director Olivier Pietquin said, to provide tools that can sort out many animals’ speech patterns.

    ESP introduced NatureLM-audio this fall, touting the system as the first large audio-language model fit for animals. The tool can identify species and distinguish characteristics such as sex or stage of life. When applied to a population — zebra finches — it had not been trained on, NatureLM-audio accurately counted the number of birds at a rate higher than random chance, according to ESP. The results were a positive sign for Pietquin that NatureLM might be able to scale across species.

    “That is only possible with a lot of computing, a lot of data and many, many collaborations with ecologists and biologists,” he said. “That, I think, makes us, makes it, quite serious.”

    ESP acknowledges that it isn’t sure what will be discovered about animal communications and won’t know when its model gets it absolutely right. But the team likens AI to the microscope: advancements that allowed scientists to see far more than previously considered possible.

    Zebra finches are highly social animals with large call repertoires. Whether congregating in pairs or by the hundreds, they produce hours of data — a help to the nonprofit’s AI scientists given that animal sounds aren’t as abundant as the pages of internet text scraped to train chatbots.

    James, an affiliated researcher with the Earth Species Project, struggles with the concept of decoding animal communications. Sure, he can clearly distinguish when a chick is screaming for food. But he doesn’t expect to ever translate that call or any others into a human word.

    Still, he wonders if he can gather more hints about their interactions from aspects of the call such as its pitch or duration.

    “So can we find a link between a form and function is sort of our way of maybe thinking about decoding,” James said. “As she elongates her call, is that because she’s trying harder to elicit a response?”

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Changing OpenAI’s nonprofit structure would raise questions about its future

    Changing OpenAI’s nonprofit structure would raise questions about its future

    NEW YORK — The artificial intelligence maker OpenAI may face a costly and inconvenient reckoning with its nonprofit origins even as its valuation recently exploded to $157 billion.

    Nonprofit tax experts have been closely watching OpenAI, the maker of ChatGPT, since last November when its board ousted and rehired CEO Sam Altman. Now, some believe the company may have reached — or exceeded — the limits of its corporate structure, under which it is organized as a nonprofit whose mission is to develop artificial intelligence to benefit “all of humanity” but with for-profit subsidiaries under its control.

    Jill Horwitz, a professor in law and medicine at UCLA School of Law who has studied OpenAI, said that when two sides of a joint venture between a nonprofit and a for-profit come into conflict, the charitable purpose must always win out.

    “It’s the job of the board first, and then the regulators and the court, to ensure that the promise that was made to the public to pursue the charitable interest is kept,” she said.

    Altman recently confirmed that OpenAI is considering a corporate restructure but did not offer any specifics. A source told The Associated Press, however, that the company is looking at the possibility of turning OpenAI into a public benefit corporation. No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said.

    In the event the nonprofit loses control of its subsidiaries, some experts think OpenAI may have to pay for the interests and assets that had belonged to the nonprofit. So far, most observers agree OpenAI has carefully orchestrated its relationships between its nonprofit and its various other corporate entities to try to avoid that.

    However, they also see OpenAI as ripe for scrutiny from regulators, including the Internal Revenue Service and state attorneys general in Delaware, where its incorporated, and in California, where it operates.

    Bret Taylor, chair of the OpenAI nonprofit’s board, said in a statement that the board was focused on fulfilling its fiduciary obligation.

    “Any potential restructuring would ensure the nonprofit continues to exist and thrive, and receives full value for its current stake in the OpenAI for-profit with an enhanced ability to pursue its mission,” he said.

    Here are the main questions nonprofit experts have:

    Tax-exempt nonprofits sometimes decide to change their status. That requires what the IRS calls a conversion.

    Tax law requires money or assets donated to a tax-exempt organization to remain within the charitable sector. If the initial organization becomes a for-profit, generally, a conversion is needed where the for-profit pays the fair market value of the assets to another charitable organization.

    Even if the nonprofit OpenAI continues to exist in some way, some experts argue it would have to be paid fair market value for any assets that get transferred to its for-profit subsidiaries.

    In OpenAI’s case, there are many questions: What assets belong to its nonprofit? What is the value of those assets? Do they include intellectual property, patents, commercial products and licenses? Also, what is the value of giving up control of the for-profit subsidiaries?

    If OpenAI were to diminish the control that its nonprofit has over its other business entities, a regulator may require answers to those questions. Any change to OpenAI’s structure will require it to navigate the laws governing tax-exempt organizations.

    Andrew Steinberg, counsel at Venable LLP and a member of the American Bar Association’s nonprofit organizations committee, said it would be an “extraordinary” transaction to change the structure of corporate subsidiaries of a tax-exempt nonprofit.

    “It would be a complex, involved process with numerous different legal and regulatory considerations to work through,” he said. “But it’s not impossible.”

    To be granted tax-exempt status, OpenAI had to apply to the IRS and explain its charitable purpose. OpenAI provided The Associated Press a copy of that September 2016 application, which shows how significantly the organization’s plans for its technology and structure have changed.

    OpenAI spokesperson Liz Bourgeois said in an email that the organization’s missions and goals remained constant, though the way it’s carried out its mission has evolved alongside advances in technology.

    When OpenAI incorporated as a nonprofit in Delaware, it wrote that its purpose was, “to provide funding for research, development and distribution of technology related to artificial intelligence.” In tax filings, it’s also described its mission as building, “general-purpose artificial intelligence (AI) that safely benefits humanity, unconstrained by a need to generate financial return.”

    Steinberg said there is no problem with the organization’s plans changing as long as it reported that information on its annual tax returns, which it has.

    But some observers, including Elon Musk, who was a board member and early supporter of OpenAI and has sued the organization, are skeptical that it has been faithful to its mission.

    The “godfather of AI” Geoffrey Hinton, who was co-awarded the Nobel Prize in physics on Tuesday, has also expressed concern about OpenAI’s evolution, openly boasting that one of his former students, Ilya Sutskever, who went on to co-found the organization, helped oust Altman as CEO before bringing him back.

    “OpenAI was set up with a big emphasis on safety. Its primary objective was to develop artificial general intelligence and ensure that it was safe,” Hinton said, adding that “over time, it turned out that Sam Altman was much less concerned with safety than with profits. And I think that’s unfortunate.”

    Sutskever, who led a team focused on AI safety at OpenAI, left the organization in May and has started his own AI company. OpenAI for its part says it is proud of its safety record.

    Ultimately, this question returns to the board of OpenAI’s nonprofit, and the extent to which it is acting to further the organization’s charitable mission.

    Steinberg said that any regulators looking at a nonprofit board’s decision will be most interested in the process through which it arrived at that decision, not necessarily whether it reached the best decision.

    He said regulators, “will often defer to the business judgment of members of the board as long as the transactions don’t involve conflict of interests for any of the board members. They don’t stand to gain financially from the transaction.”

    Whether any board members were to benefit financially from any change in OpenAI’s structure could also be of interest to nonprofit regulators.

    In response to questions about if Altman might be given equity in the for-profit subsidiary in any potential restructuring, OpenAI board chair Taylor said in a statement, “The board has had discussions about whether it would be beneficial to the company and our mission to have Sam be compensated with equity, but no specific figures have been discussed nor have any decisions been made.”

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Documents show OpenAI’s long journey from nonprofit to $157B valued company

    Documents show OpenAI’s long journey from nonprofit to $157B valued company

    Back in 2016, a scientific research organization incorporated in Delaware and based in Mountain View, California, applied to be recognized as a tax-exempt charitable organization by the Internal Revenue Services.

    Called OpenAI, the nonprofit told the IRS its goal was to “advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.”

    Its assets included a $10 million loan from one of its four founding directors and now CEO, Sam Altman.

    The application, which nonprofits are required to disclose and which OpenAI provided to The Associated Press, offers a view back in time to the origins of the artificial intelligence giant that has since grown to include a for-profit subsidiary recently valued at $157 billion by investors.

    It’s one measure of the vast distance OpenAI — and the technology that it researches and develops — has traveled in under a decade.

    In the application, OpenAI indicated it did not plan to enter into any joint ventures with for-profit organizations, which it has since done. It also said it did “not plan to play any role in developing commercial products or equipment,” and promised to make its research freely available to the public.

    A spokesperson for OpenAI, Liz Bourgeois, said in an email that the organization’s missions and goals have remained constant, though the way it’s carried out its mission has evolved alongside advances in technology.

    Attorneys who specialize in advising nonprofits have been watching OpenAI’s meteoric rise and its changing structure closely. Some wonder if its size and the scale of its current ambitions have reached or exceeded the limits of how nonprofits and for-profits may interact. They also wonder the extent to which its primary activities advance its charitable mission, which it must, and whether some may privately benefit from its work, which is prohibited.

    In general, nonprofit experts agree that OpenAI has gone to great lengths to arrange its corporate structure to comply with the rules that govern nonprofit organizations. OpenAI’s application to the IRS appears typical, said Andrew Steinberg, counsel at Venable LLP and a member of the American Bar Association’s nonprofit organizations committee.

    If the organization’s plans and structure changed, it would need to report that information on its annual tax returns, Steinberg said, which it has.

    “At the time that the IRS reviewed the application, there wasn’t information that that corporate structure that exists today and the investment structure that they pursued was what they had in mind,” he said. “And that’s okay because that may have developed later.”

    Here are some highlights from the application:

    At inception, OpenAI’s research plans look quaint in light of the race to develop AI that was in part set off by its release of ChatGPT in 2022.

    OpenAI told the IRS it planned to train an AI agent to solve a wide variety of games. It aimed to build a robot to perform housework and to develop a technology that could “follow complex instructions in natural language.”

    Today, its products, which include text-to-image generators and chatbots that can detect emotion and write code, far exceed those technical thresholds.

    The nonprofit OpenAI indicated on the application form that it had no plans to enter into joint ventures with for-profit entities.

    It also wrote, “OpenAI does not plan to play any role in developing commercial products or equipment. It intends to make its research freely available to the public on a nondiscriminatory basis.”

    OpenAI spokesperson Bourgeois said the organization believes the best way to accomplish its mission is to develop products that help people use AI to solve problems, including many products it offers for free. But they also believe developing commercial partnerships has helped further their mission, she said.

    OpenAI reported to the IRS in 2016 that regularly sharing its research “with the general public is central to the mission of OpenAI. OpenAI will regularly release its research results on its website and share software it has developed with the world under open source software licenses.”

    It also wrote it “intends to retain the ownership of any intellectual property it develops.”

    The value of that intellectual property and whether it belongs to the nonprofit or for-profit subsidiary could become important questions if OpenAI decides to alter its corporate structure, as Altman confirmed in September it was considering.

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • ChatGPT maker OpenAI raises $6.6 billion in fresh funding as it moves away from its nonprofit roots

    ChatGPT maker OpenAI raises $6.6 billion in fresh funding as it moves away from its nonprofit roots

    OpenAI said Wednesday it has raised $6.6 billion in venture capital investments as part of a broader shift by the ChatGPT maker away from its nonprofit roots.

    Led by venture capital firm Thrive Capital, the funding round was backed by tech giants Microsoft, Nvidia and SoftBank, according to a source familiar with the funding who was not authorized to speak about it publicly.

    The investment represents one of the biggest fundraising rounds in U.S. history, and ranks as the largest in the past 17 years that doesn’t include money coming from a single deep-pocketed company, according to PitchBook, which tracks venture capital investments.

    Microsoft pumped up OpenAI last year with a $10 billion investment in exchange for a large stake in the company’s future growth, mirroring a strategy that tobacco giant Altria Group deployed in 2018 when it invested $12.8 billion into the now-beleaguered vaping startup Juul.

    OpenAI said the new funding “will allow us to double down on our leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems.” The company said the funding gives it a market value of $157 billion and will “accelerate progress on our mission.”

    The influx of money comes as OpenAI has been looking to more fully convert itself from a nonprofit research institute into a for-profit corporation accountable to shareholders.

    While San Francisco-based OpenAI already has a rapidly growing for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity by safely building futuristic forms of artificial intelligence that can perform tasks better than humans.

    That sets certain limits on how much profit it makes and how much shareholders get in return for costly investments into the computing power, specialized AI chips and computer scientists it takes to build generative AI tools. But the governance structure would change if the board follows through with a plan to convert itself to a public-benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

    Along with Thrive Capital, the funding backers include Khosla Ventures, Altimeter Capital, Fidelity Management and Research Company, MGX, ARK Invest and Tiger Global Management.

    Not included in the round is Apple, despite speculation it might take a stronger interest in OpenAI’s future after recently teaming up with the company to integrate ChatGPT into its products.

    Brendan Burke, an analyst for PitchBook, said that while OpenAI’s existing close partnership with Microsoft has given it broad access to computing power, it still “needs follow-on funding to expand model training efforts and build proprietary products.”

    Burke said it will also help it keep up with rivals such as Elon Musk’s startup xAI, which recently raised $6 billion and has been working to build custom data centers such as one in Memphis, Tennessee. Musk, who helped bankroll OpenAI’s early years as a nonprofit, has become a sharp critic of the company’s commercialization.

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    Associated Press writers Michael Liedtke in San Francisco and Kelvin Chan in London contributed to this report.

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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  • OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

    OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

    OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

    The company’s board is considering a decision that would change the company into a public benefit corporation, according to a source familiar with the discussions who wasn’t authorized to speak publicly about them.

    While OpenAI already has a for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity. That would change if the company converts the core of its structure to a public benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

    No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said.

    OpenAI’s CEO Sam Altman acknowledged in public remarks Thursday that the company is thinking about restructuring but said the departures of key executives the day before weren’t related.

    Speaking at a tech conference in Italy, Sam Altman mentioned that OpenAI has been considering an overhaul to get to the “next stage.” But he said it was not connected to the Wednesday resignations of Chief Technology Officer Mira Murati and two other top leaders.

    “OpenAI will be stronger for it as we are for all of our transitions,” Altman told the Italian Tech Week event in Turin. “I saw some stuff that this was, like, related to a restructure. That’s totally not true. Most of the stuff I saw was also just totally wrong,” he said without any more specificity.

    “But we have been thinking about (a restructuring),” he added. OpenAI’s board has been considering a revamp for a year as it tries to figure out what’s needed to “get to our next stage.”

    OpenAI said Thursday that it will still retain a nonprofit arm.

    “We remain focused on building AI that benefits everyone and as we’ve previously shared we’re working with our board to ensure that we’re best positioned to succeed in our mission,” it said in a written statement. “The nonprofit is core to our mission and will continue to exist.”

    The resignations of Murati, Chief Research Officer Bob McGrew and another research leader, Barret Zoph, were “just about people being ready for new chapters of their lives and a new generation of leadership,” Altman said.

    The exits were the latest in a string of recent high-profile departures that also include the resignations of OpenAI co-founder Ilya Sutskever and safety team leader Jan Leike in May. In a statement, Leike had leveled criticism at OpenAI for letting safety “take a backseat to shiny products.”

    Much of the conflict at OpenAI has been rooted in its unusual governance structure. Founded in 2015 as a nonprofit with a mission to safely build futuristic AI to help humanity, it is now a fast-growing big business still controlled by a nonprofit board bound to its original mission.

    This unique structure made it possible for four OpenAI board members — Sutskever, two outside tech entrepreneurs and an academic — to briefly oust Altman last November in what was later described as a dispute over a “significant breakdown in trust” between the board and top executives. But with help from a powerful backer, Microsoft, Altman was brought back to the CEO role days later and a new board replaced the old one. OpenAI also put Altman back on the board of directors in May.

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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