OpenAI Foundation to Spend Over $1 Billion This Year

OpenAI Foundation to Spend Over $1 Billion This Year

3 Min Read

The nonprofit overseeing OpenAI has announced four program areas: Alzheimer’s, jobs, AI resilience, and community, alongside two senior hires for the largest areas. This announcement highlights a significant shift from its charitable past to new ambitions.

When OpenAI shifted its operations to a for-profit subsidiary in 2019, its nonprofit entity became mostly inactive as a grantmaker. IRS filings show $51 million in expenses for 2018, dropping to $3.3 million in 2019.

In its most recent IRS report for 2024, OpenAI’s nonprofit received $4,433 in contributions and granted $7.6 million. The newly named OpenAI Foundation plans to invest at least $1 billion next year across four programs.

This $1 billion is part of the $25 billion commitment announced last October when OpenAI restructured, turning its for-profit arm into a public benefit corporation, OpenAI Group PBC, with the nonprofit remaining in control.

The recapitalization valued OpenAI’s for-profit at around $130 billion, providing the Foundation an equity stake that ranks it among the world’s best-resourced philanthropic entities. Foundation board chair Bret Taylor provides an update on the distribution of these resources.

The four focus areas are life sciences and curing diseases, jobs and economic impact, AI resilience, and community programs. Life sciences is advanced, with three sub-areas: AI for Alzheimer’s, public data for health, and progress on high-mortality diseases.

Jacob Trefethen will lead this work, coming from Coefficient Giving, a philanthropic organization linked to the effective altruism movement, which has had prior disagreements with OpenAI’s leadership on AI priorities. Coefficient Giving managed over $500 million in science and health grants under Trefethen.

The effective altruism connection is notable, as the community raising concerns about AI risks is now aiding OpenAI’s philanthropy distribution.

For AI resilience, addressing harm from more capable AI, OpenAI co-founder Wojciech Zaremba is joining as Head of AI Resilience.

Zaremba, one of OpenAI’s few remaining original co-founders, will initially focus on AI’s impact on children and youth. The Foundation will soon finalize grants from its People-First AI Fund. As for jobs and economic impact, the Foundation engages with civil groups, businesses, unions, and economists, with more details forthcoming.

Two additional hires complete the Foundation’s leadership. Anna Makanju will join mid-April as Head of AI for Civil Society and Philanthropy, leading AI-related work for nonprofits, NGOs, and philanthropic bodies.

An Executive Director position for overseeing grantmaking is still open. The Foundation’s growth from a $7.6 million grantmaker in 2024 to $1 billion annually by 2026 signifies a major transformation alongside its commercial restructuring.

You might also like