OpenAI Foundation, the rebranded nonprofit arm of OpenAI, awarded $40.5 million to more than 200 nonprofits in its first grant round since October, providing unrestricted funds to support AI literacy, civic life, and economic opportunity for organizations with budgets between $500,000 and $10 million, according to Euronews.
OpenAI originated as a nonprofit organization in 2015, established to advance artificial intelligence research for the benefit of humanity. Over time, it incorporated a for-profit subsidiary to facilitate growth and investment. This subsidiary has developed into one of the most valuable startups globally, valued in the tens of billions of dollars due to innovations like ChatGPT. The structure allowed OpenAI to balance mission-driven goals with commercial viability, attracting significant capital while maintaining oversight from its nonprofit roots.
In October, OpenAI underwent a structural transformation. The nonprofit entity rebranded as the OpenAI Foundation. Simultaneously, the for-profit subsidiary formally reincorporated as a public benefit corporation. This change complied with regulatory agreements and aimed to streamline operations for investor appeal. Despite the shift, the nonprofit board retains authority as the highest decision-making body, ensuring alignment with the original mission of safe AI development.
The OpenAI Foundation has pledged €21.45 billion ($25 billion) specifically for health research initiatives and projects categorized as AI resilience. AI resilience refers to efforts designed to minimize risks associated with artificial intelligence technologies, such as unintended consequences or societal disruptions. The foundation has not specified a disbursement timeline for these substantial funds, leaving the pace of allocation open-ended based on strategic priorities.
Prior to the October rebranding, OpenAI committed to distributing $50 million in July. This pledge responded directly to recommendations from an advisory commission convened to provide feedback on fulfilling the mission of building safe AI for humanity’s benefit. The commission outlined pathways for responsible AI advancement, prompting the funding allocation. Additionally, OpenAI announced plans to distribute another $9.5 million in grants over the coming months, guided by recommendations from its board of directors. These grants extend the organization’s commitment to external support for AI-related endeavors.
The first round of grants from the OpenAI Foundation totaled $40.5 million (€34.74 million) and targeted nonprofits with annual budgets ranging from $500,000 to $10 million (€429,000 to €8.58 million). The funding remains unrestricted, allowing recipients full discretion in usage. OpenAI encouraged applications focused on projects that promote AI literacy, which involves educating communities on AI technologies and their implications; strengthen civic life, through initiatives enhancing community engagement and governance; or foster economic opportunity, by supporting programs that address job displacement or skill gaps caused by AI. This approach broadens the impact beyond technical fields.
More than 3,000 nonprofits submitted applications for this inaugural round. A panel of outside advisers conducted initial reviews to evaluate proposals based on merit and alignment with grant objectives. The nonprofit board then made the final decisions on awards, ensuring decisions reflected the organization’s core values. This process incorporated diverse expertise to maintain transparency and fairness in selections.
Recipients span a wide array of sectors, with few dedicated exclusively to technology. Examples include journalism organizations that may use funds to integrate AI tools into reporting workflows, dance companies exploring AI for performance analysis or choreography assistance, and community organizations addressing local needs through AI-enhanced services. This diversity underscores the foundation’s intent to apply AI benefits across societal domains.
One recipient, the Three Rivers Young People’s Orchestras in Pittsburgh, received $90,000 (€77,200), equivalent to 10% of its annual budget for the current year. The organization operates multiple youth orchestras, serving children through musical education and performance opportunities. Executive director Lindsey Nova expressed surprise at the selection, stating she was shocked to have been chosen. The group already incorporates ChatGPT as an assistant and drafting tool in administrative tasks, a detail highlighted in its application to demonstrate existing AI engagement.
The proposed project involves researching and developing two distinct apps. The first app would record orchestra rehearsals and incorporate bookmarks triggered by the conductor during sessions. These bookmarks would generate notes capturing the conductor’s instructions, linked directly to the corresponding audio or video clip from the rehearsal. This functionality aims to provide musicians with precise references for self-review. The second app would complement this by offering additional tools for practice enhancement, though specifics remain tied to the research phase.
Lindsey Nova emphasized the limitations of the technology in her comments. “That can’t replace the conductor. It can’t replace the kids learning how to play their instrument,” she said. She further clarified, “There’s nothing about the children’s experience that will be replaced by a robot, but they’ll have a better sense of what they need to work on between rehearsals.” These statements highlight the apps’ role as supplementary aids, preserving the human elements of musical training while leveraging AI for targeted improvement.
To prepare the application, the orchestra collaborated with Adam Hertzman, who operates Adartova, a small philanthropic consulting practice. Hertzman assisted in brainstorming project ideas and refining the proposal. Notably, his wife serves on the organization’s board, adding a personal connection to the partnership. This collaboration helped tailor the application to meet OpenAI’s criteria effectively.
Hertzman actively promoted the grant opportunity within his client network and professional contacts, believing many small and medium-sized nonprofits were unaware of the open call. He remarked, “Given the size of the potential grants, the simplicity of the application process and the fact that the grants are unrestricted, I would have expected more (nonprofits to apply).” His efforts aimed to increase participation from underrepresented groups, capitalizing on the grants’ flexible and substantial nature.
Following the October reincorporation, the for-profit wing of OpenAI issued a new call for research proposals on the intersection of AI and mental health. This initiative primarily targets nonprofits and promises to award $2 million (€1.72 million) by mid-January. Applicants must submit detailed proposals outlining research into how AI technologies influence mental well-being, with selections based on potential contributions to the field.
Amid these developments, OpenAI faces multiple lawsuits. These legal actions allege that interactions with ChatGPT have led to suicides or induced harmful delusions among users who had no prior mental health issues. The claims center on the chatbot’s responses potentially exacerbating vulnerabilities, prompting scrutiny of AI safety measures in conversational interfaces.
