Uncertainty, power dynamics, and trust within Open AI’s leadership

In this business case study published in the Journal of Nonprofit Education and Leadership, we investigated archival information on the nonprofit organization Open AI to explain a timeline of power dynamics issues from the press and provide a scholarly explanation of three governance issues faced by leadership. The case study can be used to teach consultants and students about hybrid governance, stakeholder theory, and the nuances of trust.

Abstract: Leaders in nonprofits are constantly faced with challenges and must manage uncertainty to help their organization fulfill its mission. In this case study, we first illustrate the power dynamics issues faced by OpenAI, a 501(c)(3) nonprofit and its for-profit with a timeline of events from the press. Second, we focus on three governance points: 1) OpenAI’s hybrid governance structure, which makes it difficult to manage competing priorities, 2) the multiple stakeholders OpenAI impacts, 3) and all the unique trust relationships among board members, which are constantly changing and need to be reevaluated. Third, throughout the three governance points, we weave in specific explanations and examples of: the types of power, guidelines for effectively using power, contingencies of power, influence tactics, and responses to power. We provide a set of discussion questions and a turnkey teaching note with multimedia resources and activities for instruction with students and consultants.

Citation: O’Steen, H., Lassu, R.A., & Stuart, B. (2025) Managing uncertainty: The power dynamics within

Open AI’s leadership. Journal of Nonprofit Education and Leadership. Vol. 14(4).

URL: https://www.researchgate.net/publication/396133967_Managing_Uncertainty_The_Power_Dynamics_within_Open_AI's_Leadership