Close the Bait-and-Switch Nonprofit Loophole
The Coalition for Artificial Intelligence Nonprofit Integrity (Cani) – which includes researchers, Nobel laureates, consumer advocates, nonprofits, and community leaders – is advocating to preserve nonprofit integrity by ending the exploitation of our state’s nonprofit law by some in Big Tech.
AB 501 Will Close the Nonprofit Loophole
California law has an unintentional loophole that allows startup venture capital nonprofits to attract top talent and contributors in artificial intelligence to support their stated altruistic mission with the secret intention of transitioning to a for-profit corporation once valuable products and services exist.
The Current Law:
- Provides an unfair advantage to beat or even eliminate competition
- Concentrates a huge financial advantage into the hands of a few versus those who contributed and supported the nonprofit
- Weakens trust in nonprofits with little to hold them accountable to their original stated mission
OpenAI’s False Promises
OpenAI is an example of a startup venture capitalist nonprofit attempting to pull a bait-and-switch by exploiting a legal loophole to convert to a for-profit to win the race to AGI (Artificial General Intelligence) and unduly concentrate power in the hands of a few.
Startup Venture Capital Nonprofits Must Be Held Accountable
- There is no second place in the race to AGI: The first team to develop AGI will harness its unprecedented speed and power to improve at a rate far beyond what human developers could achieve, leaving everyone else far behind.
- Artificial General Intelligence will be humanity’s greatest asset and is within one to three years from being realized. It will become humanity’s most valuable property – with the ability to surpass human capacity and solve the world’s most complex and challenging problems.