OpenAI Announce(job) appointmentThe addition of Scott Schools, former Chief Ethics and Compliance Officer at Uber, as the company's Chief Compliance Officer will bring a new compliance perspective to OpenAI. He brings a deep understanding of compliance and ethics issues from his time as a deputy attorney general at the U.S. Department of Justice.
As OpenAI's operations continue to expand and face increasing regulatory scrutiny, the company wanted to leverage Schools' professional background to strengthen its own work on AI governance frameworks and ethical standards. His addition to the team marks an important step in OpenAI's journey toward greater compliance and transparency.
At the same time, OpenAI is also undergoing a broader restructuring, with plans to transform the company into a public benefit corporation (PBC). Such a shift would not only allow the company to focus more on social welfare while pursuing profitability, but is also seen as a strategy necessary to attract large investments. The change comes against the backdrop of OpenAI's desire to raise $5 billion in a new funding round to drive the company's valuation past $150 billion.
This shift in business model would also help streamline OpenAI's existing governance structure, which currently has a nonprofit board of directors overseeing its for-profit operations, an arrangement that has somewhat irked investors. As a result, reshaping the company's governance structure has become a top priority.
The appointment comes after OpenAI experienced a series of executive departures, including Chief Technology Officer Mira Murati and two other senior executives.advancedThe departure of researchers. In the face of these challenges, OpenAI clearly realizes that ensuring that it has its AI compliance and ethical development under control will be an important safeguard in maintaining investor confidence.