OpenAI awards $40.5M to a wide range of nonprofits under new foundation structure

OpenAI Foundation Distributes $40.5 Million to Over 200 Nonprofits in Inaugural Grant Round

OpenAI has awarded $40.5 million to more than 200 nonprofits in the first round of grants since rebranding its nonprofit arm as the OpenAI Foundation in October. The recipients span a diverse range of sectors, with few dedicated specifically to technology.

The foundation, which has committed $25 billion to fund health research and what it terms “AI resilience” – efforts to minimize risks associated with artificial intelligence technologies – initially promised $50 million in grants last July. This announcement followed recommendations from an advisory commission convened to guide OpenAI in fulfilling its mission of developing safe AI that benefits humanity.

An additional $9.5 million in grants will be announced in coming months based on recommendations from the foundation’s board of directors, according to the organization.

The current funding comes with no restrictions, giving recipient organizations freedom in how they allocate the money. However, OpenAI specifically sought applications for projects supporting AI literacy, strengthening civic life, or fostering economic opportunity. Eligibility was limited to nonprofits with annual budgets between $500,000 and $10 million.

More than 3,000 nonprofits submitted applications for this first funding round. The selection process involved review by external advisers, with final decisions made by the board. The grantee list includes a broad spectrum of organizations such as journalism outlets, dance companies, and community groups.

Among the recipients is the Three Rivers Young People’s Orchestras based in Pittsburgh, which received $90,000 – representing 10% of its annual budget. Executive Director Lindsey Nova expressed surprise at being selected.

“It’s here to stay. It’s not going anywhere, so we might as well do our best to make sure that it’s a tool for good,” Nova said regarding AI technologies. Her organization already utilizes ChatGPT as an assistant and drafting tool, which was highlighted in their application.

The orchestra group proposed developing two apps with the funding. One would record rehearsals with conductor-triggered bookmarks, creating notes paired with relevant rehearsal clips.

“That can’t replace the conductor. It can’t replace the kids learning how to play their instrument,” Nova explained. “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.”

The organization worked with Adam Hertzman of Adartova, a small philanthropic consulting practice, on their application. Hertzman had actively promoted the grant opportunity among his clients and network, believing many small and medium nonprofits were unaware of the open call.

“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, he noted.

OpenAI’s journey from nonprofit to tech giant reflects the evolving landscape of AI development. Originally established as a nonprofit in 2015, the organization later incorporated a for-profit subsidiary that has grown into one of the world’s most valuable startups. For years, OpenAI sought to distance itself from its nonprofit origins to attract investors more easily.

In October, the company reached an agreement with regulators to formally restructure as a public benefit corporation, though the nonprofit board remains the highest decision-making authority.

The for-profit division of OpenAI announced on Monday a new call for research proposals focused on AI and mental health, primarily targeting nonprofits. The company plans to award $2 million by mid-January to successful applicants. This initiative comes as OpenAI faces multiple lawsuits alleging that ChatGPT contributed to suicides or created harmful delusions in individuals with no prior mental health issues.

This substantial philanthropic effort represents one of the largest coordinated funding initiatives specifically aimed at helping nonprofits navigate and leverage artificial intelligence, while simultaneously addressing concerns about AI’s societal impact.