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OpenAI is a nonprofit-corporate hybrid: A management expert explains how this model works − and how it fueled the tumult around CEO Sam Altman’s short-lived ouster

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OpenAI is a nonprofit-corporate hybrid: A management expert explains how this model works − and how it fueled the tumult around CEO Sam Altman's short-lived ouster

OpenAI Sam Altman had a tumultuous November.
omohiro Ohsumi/Getty Images

Alnoor Ebrahim, Tufts University

The board of OpenAI, creator of the popular ChatGPT and DALL-E artificial intelligence tools, fired Sam Altman, its chief executive officer, in late November 2023.

Chaos ensued as investors and employees rebelled. By the time the mayhem had subsided five days later, Altman had returned triumphantly to the OpenAI fold amid staff euphoria, and three of the board members who had sought his ouster had resigned.

The structure of the board – a nonprofit board of directors overseeing a for-profit subsidiary – seems to have played a role in the drama.

As a management scholar who researches organizational accountability, governance and performance, I'd like to explain how this hybrid approach is supposed to work.

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Hybrid governance

Altman co-founded OpenAI in 2015 as a tax-exempt nonprofit with a mission “to build artificial general intelligence (AGI) that is safe and all of humanity.” To raise more capital than it could amass through charitable donations, OpenAI later established a holding company that enables it to take money from investors for a for-profit subsidiary it created.

OpenAI's chose this “hybrid governance” structure to enable it to stay true to its social mission while harnessing the power of markets to grow its operations and revenues. Merging profit with purpose has enabled OpenAI to raise billions from investors seeking financial returns while balancing “commerciality with safety and sustainability, rather than focusing on pure profit-maximization,” according to an explanation on its website.

Major investors thus have a large stake in the of its operations. That's especially true for Microsoft, which owns 49% of OpenAI's for-profit subsidiary after investing US$13 billion in the company. But those investors aren't entitled to board seats as they would be in typical corporations.

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And the profits OpenAI returns to its investors are capped at approximately 100 times what the initial investors put in. This structure calls for it to revert to a nonprofit once that point is reached. At least in principle, this design was intended to prevent the company from veering from its purpose of benefiting humanity safely and to avoid compromising its mission by recklessly pursuing profits.

Other hybrid governance models

There are more hybrid governance models than you might think.

For example, the Philadelphia Inquirer, a for-profit newspaper, is owned by the Lenfest Institute, a nonprofit. The structure allows the newspaper to attract investments without compromising on its purpose – journalism serving the needs of its local communities.

Patagonia, a designer and purveyor of outdoor clothing and gear, is another prominent example. Its founder, Yvon Chouinard, and his heirs have permanently transferred their ownership to a nonprofit trust. All of Patagonia's profits now fund environmental causes.

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Anthropic, one of OpenAI's competitors, also has a hybrid governance structure, but it's set up differently than OpenAI's. It has two distinct governing bodies: a corporate board and what it calls a long-term benefit trust. Because Anthropic is a public benefit corporation, its corporate board may consider the interests of other stakeholders besides its owners – the general public.

And BRAC, an international organization founded in Bangladesh in 1972 that's among the world's largest NGOs, controls several for-profit social enterprises that benefit the poor. BRAC's model resembles OpenAI's in that a nonprofit owns for-profit businesses.

Origin of the board's clash with Altman

The primary responsibility of the nonprofit board is to ensure that the mission of the organization it oversees is upheld. In hybrid governance models, the board has to ensure that market pressures to make money for investors and shareholders don't override the organization's mission – a risk known as mission drift.

Nonprofit boards have three primary duties: the duty of obedience, which obliges them to act in the interest of the organization's mission; the duty of care, which requires them to exercise due diligence in making decisions; and the duty of loyalty, which commits them to avoiding or addressing conflicts of interest.

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It appears that OpenAI's board sought to exercise the duty of obedience when it decided to sack Altman. The official reason given was that he was “not consistently candid in his communications” with its board. Additional rationales raised anonymously by people identified as “Concerned Former OpenAI Employees” have not been verified.

In addition, board member Helen Toner, who left the board amid this upheaval, co-authored a research paper just a month before the failed effort to depose Altman. Toner and her co-authors praised Anthropic's precautions and criticized OpenAI's “frantic corner-cutting” around the release of its popular ChatGPT chatbot.

Mission v. money

This wasn't the first attempt to oust Altman on the grounds that he was straying from mission.

In 2021, the organization's head of AI safety, Dario Amodei, unsuccessfully tried to persuade the board to oust Altman because of safety concerns, just after Microsoft invested $1 in the company. Amodei later left OpenAI, along with about a dozen other researchers, and founded Anthropic.

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The seesaw between mission and money is perhaps best embodied by Ilya Sutskever, an OpenAI co-founder, its chief scientist and one of the three board members who were forced out or stepped down.

Sutskever first defended the decision to oust Altman on the grounds that it was necessary for protecting the mission of making AI beneficial to humanity. But he later changed his mind, tweeting: “I deeply regret my participation in the board's actions.”

He eventually signed the employee letter calling for Altman's reinstatement and remains the company's chief scientist.

Man in blue button-down shirt gesticulates with one arm outstretched against a backdrop with the words TechCrunch and DISRUPT
Former OpenAI executive Dario Amodei co-founded Anthropic, another AI company with a nonprofit board. He now serves as its CEO.
Kimberly White/Getty Images for TechCrunch

AI risks

An equally important question is whether the board exercised its duty of care.

I believe it's reasonable for OpenAI's board to question whether the company released ChatGPT with sufficient guardrails in November 2022. Since then, large language models have wreaked havoc in many industries.

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I've seen this firsthand as a professor.

It has become nearly impossible in many cases to tell whether are cheating on assignments by using AI. Admittedly, this risk pales in comparison to AI's ability to do even worse things, such as by helping design pathogens of pandemic potential or create disinformation and deepfakes that undermine social trust and endanger democracy.

On the flip side, AI has the potential to huge benefits to humanity, such as speeding the development of lifesaving vaccines.

But the potential risks are catastrophic. And once this powerful technology is released, there is no known “off switch.”

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Conflicts of interest

The third duty, loyalty, depends on whether board members had any conflicts of interest.

Most obviously, did they stand to make money from OpenAI's products, such that they might compromise its mission in the expectation of financial gain? Typically the members of a nonprofit board are unpaid, and those who aren't working for the organization have no financial stake in it. CEOs to their boards, which have the authority to hire and fire them.

Until OpenAI's recent shake-up, however, three of its six board members were paid executives – the CEO, the chief scientist and the president of its profit-making arm.

I'm not surprised that while the three independent board members all voted to oust Altman, all of the paid executives ultimately backed him. Earning your paycheck from an entity you are supposed to oversee is considered a conflict of interest in the nonprofit world.

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I also believe that even if OpenAI's reconfigured board manages to fulfill the mission of serving the needs of society, rather than maximizing its profits, it would not be enough.

The tech industry is dominated by the likes of Microsoft, Meta and Alphabet – massive for-profit corporations, not mission-driven nonprofits. Given the stakes, I think regulation with teeth is required – leaving governance in the hands of AI's creators will not solve the problem.The Conversation

Alnoor Ebrahim, Professor of Management, Tufts University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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The Conversation

Vaccines tell a success story that Robert F. Kennedy Jr. and Trump forget – here are some key reminders

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theconversation.com – Mark R. O'Brian, Professor and Chair of Biochemistry, Jacobs School of Medicine and Biomedical Sciences, at Buffalo – 2024-07-26 07:11:29
Many fatal childhood illnesses can be prevented with vaccination.
Halfpoint Images/Moment via Getty Images

Mark R. O'Brian, University at Buffalo

Vaccinations have provided significant protection for the public against infectious diseases. However, there was a modest decrease in support in 2023 nationwide for vaccine requirements for children to attend public schools.

In addition, the presidential candidacy of Robert F. Kennedy Jr., a leading critic of childhood vaccination, has given him a prominent platform in which to amplify his views. This includes an extensive interview on the “Joe Rogan Experience,” a podcast with over 14 million subscribers. Notably, former has said he is opposed to mandatory school COVID-19 vaccinations, and in a phone call Trump apparently wasn't aware was being recorded, he appeared to endorse Kennedy's views toward vaccines.

I am a biochemist and molecular biologist studying the roles microbes play in and disease. I also teach medical students and am interested in how the public understands science.

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Here are some facts about vaccines that skeptics like Kennedy get wrong:

Vaccines are effective and safe

Public health data from 1974 to the present conclude that vaccines have saved at least 154 million lives worldwide over the past 50 years. Vaccines are also constantly monitored for safety in the U.S.

Nevertheless, the false claim that vaccines cause autism persists despite study after study of large populations throughout the world showing no causal link between them.

Claims about the dangers of vaccines often come from misrepresenting scientific research papers. Kennedy cites a 2005 report allegedly showing massive brain inflammation in monkeys in response to vaccination, when in fact the authors of that study state that there were no serious medical complications. A separate 2003 study that Kennedy claimed showed a 1,135% increase in autism in vaccinated versus unvaccinated children actually found no consistent significant association between vaccines and neurodevelopmental outcomes.

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Kennedy also claims that a 2002 vaccine study included a control group of children 6 months of age and younger who were fed mercury-contaminated tuna sandwiches. This claim is false.

Gloved hands of clinician placing bandaid on child's arm, a syringe and vaccine vial beside them
Vaccines are continuously monitored for safety before and long after they're available to the general public.
Elena Zaretskaya/Moment via Getty Images

Aluminum adjuvants help boost immunity

Kennedy is co-counsel with a firm that is suing the pharmaceutical company Merck based in part on the unfounded assertion that the aluminum in one of its vaccines causes neurological disease. Aluminum is added to many vaccines as an adjuvant to strengthen the body's immune response to the vaccine, thereby enhancing the body's defense against the targeted microbe.

The law firm's claim is based on a 2020 report showing that brain tissue from some patients with Alzheimer's disease, autism and multiple sclerosis have elevated levels of aluminum. The authors of that study do not assert that vaccines are the source of the aluminum, and vaccines are unlikely to be the culprit.

Notably, the brain samples analyzed in that study were from 47- to 105-year-old patients. Most people are exposed to aluminum primarily through their diets, and aluminum is eliminated from the body within days. Therefore, aluminum exposure from childhood vaccines is not expected to persist in those patients.

Vaccines undergo the same approval process as other drugs

Clinical trials for vaccines and other are blinded, randomized and placebo-controlled studies. For a vaccine trial, this means that participants are randomly divided into one group that receives the vaccine and a second group that receives a placebo saline solution. The researchers carrying out the study, and sometimes the participants, do not know who has received the vaccine or the placebo until the study has finished. This eliminates bias.

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Results are published in the public domain. For example, vaccine trial data for COVID-19, human papilloma virus and rotavirus is available for anyone to access.

Vaccine manufacturers are liable for injury or death

Kennedy's lawsuit against Merck contradicts his insistence that vaccine manufacturers are fully immune from litigation.

His claim is based on an incorrect interpretation of the National Vaccine Injury Compensation Program, or VICP. VICP is a no-fault federal program created to reduce frivolous lawsuits against vaccine manufacturers, which threaten to cause vaccine shortages and a resurgence of vaccine-preventable disease.

A person claiming injury from a vaccine can petition the U.S. Court of Federal Claims through the VICP for monetary compensation. If the VICP petition is denied, the claimant can then sue the vaccine manufacturer.

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Gloved hand picking up vaccine vial among a tray of vaccine vials
Drug manufacturers are liable for any vaccine-related or injury.
Andreas Ren Photography Germany/Image Source via Getty Images

The majority of cases resolved under the VICP end in a negotiated settlement between parties without establishing that a vaccine was the cause of the claimed injury. Kennedy and his law firm have incorrectly used the payouts under the VICP to assert that vaccines are unsafe.

The VICP gets the vaccine manufacturer off the hook only if it has complied with all requirements of the Federal Food, Drug and Cosmetic Act and exercised due care. It does not protect the vaccine maker from claims of fraud or withholding information regarding the safety or efficacy of the vaccine during its development or after approval.

Good nutrition and sanitation are not substitutes for vaccination

Kennedy asserts that populations with adequate nutrition do not need vaccines to avoid infectious diseases. While it is clear that improvements in nutrition, sanitation, treatment, food safety and public health measures have played important roles in reducing deaths and severe complications from infectious diseases, these factors do not eliminate the need for vaccines.

After World War II, the U.S. was a wealthy nation with substantial health-related . Yet, Americans reported an average of 1 million cases per year of now-preventable infectious diseases.

Vaccines introduced or expanded in the 1950s and 1960s against diseases like diphtheria, pertussis, tetanus, measles, polio, mumps, rubella and Haemophilus influenza type B have resulted in the near or complete eradication of those diseases.

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It's easy to forget why many infectious diseases are rarely encountered . The success of vaccines does not always tell its own story. It must be retold again and again to counter misinformation.The Conversation

Mark R. O'Brian, Professor and Chair of Biochemistry, Jacobs School of Medicine and Biomedical Sciences, University at Buffalo

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Tagging seals with sensors helps scientists track ocean currents and a changing climate

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theconversation.com – Lilian (Lily) Dove, Postdoctoral Fellow of Oceanography, Brown – 2024-07-25 07:08:14

Tagging seals with sensors helps scientists track ocean currents and a changing climate

Lilian Dove, Brown University

A surprising technique has helped scientists observe how Earth's oceans are changing, and it's not using specialized robots or artificial intelligence. It's tagging seals.

Several species of seals around and on Antarctica and regularly dive more than 100 meters in search of their next meal. These seals are experts at swimming through the vigorous ocean currents that make up the Southern Ocean. Their tolerance for deep waters and ability to navigate rough currents make these adventurous creatures the perfect research assistants to oceanographers like my colleagues and me study the Southern Ocean.

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Seal sensors

Researchers have been attaching tags to the foreheads of seals for the past two decades to collect data in remote and inaccessible regions. A researcher tags the seal during mating season, when the marine mammal to shore to rest, and the tag remains attached to the seal for a year.

A researcher glues the tag to the seal's head – tagging seals does not affect their behavior. The tag detaches after the seal molts and sheds its fur for a new coat each year.

The tag collects data while the seal dives and transmits its location and the scientific data back to researchers via satellite when the seal surfaces for .

First proposed in 2003, seal tagging has grown into an international collaboration with rigorous sensor accuracy standards and broad data sharing. Advances in satellite technology now allow scientists to have near-instant access to the data collected by a seal.

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New scientific discoveries aided by seals

The tags attached to seals typically carry pressure, temperature and salinity sensors, all properties used to assess the ocean's rising temperatures and changing currents. The sensors also often contain chlorophyll fluorometers, which can provide data about the 's phytoplankton concentration.

Phytoplankton are tiny organisms that form the base of the oceanic food web. Their presence often means that animals such as fish and seals are around.

The seal sensors can also tell researchers about the effects of climate change around Antarctica. Approximately 150 tons of ice melts from Antarctica every year, contributing to global sea-level rise. This melting is driven by warm water carried to the ice shelves by oceanic currents.

With the data collected by seals, oceanographers have described some of the physical pathways this warm water travels to reach ice shelves and how currents transport the resulting melted ice away from glaciers.

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Seals regularly dive under sea ice and near glacier ice shelves. These regions are challenging, and can even be dangerous, to sample with traditional oceanographic methods.

Across the open Southern Ocean, away from the Antarctic coast, seal data has also shed light on another pathway causing ocean warming. Excess heat from the atmosphere moves from the ocean surface, which is in contact with the atmosphere, down to the interior ocean in highly localized regions. In these , heat moves into the deep ocean, where it can't be dissipated out through the atmosphere.

The ocean stores most of the heat energy put into the atmosphere from human activity. So, understanding how this heat moves around helps researchers monitor oceans around the globe.

Seal behavior shaped by ocean physics

The seal data also provides marine biologists with information about the seals themselves. Scientists can determine where seals look for food. Some regions, called fronts, are hot spots for elephant seals to hunt for food.

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In fronts, the ocean's circulation creates turbulence and mixes water in a way that brings nutrients up to the ocean's surface, where phytoplankton can use them. As a result, fronts can have phytoplankton blooms, which attract fish and seals.

Scientists use the tag data to see how seals are adapting to a changing climate and warming ocean. In the short term, seals may benefit from more ice melt around the Antarctic continent, as they tend to find more food in coastal areas with holes in the ice. Rising subsurface ocean temperatures, however, may change where their prey is and ultimately threaten seals' ability to thrive.

Seals have helped scientists understand and observe some of the most remote regions on Earth. On a changing planet, seal tag data will continue to provide observations of their ocean , which has vital implications for the rest of Earth's climate system.The Conversation

Lilian Dove, Postdoctoral Fellow of Oceanography, Brown University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Cheesemaking is a complex science – a food chemist explains the process from milk to mozzarella

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theconversation.com – John A. Lucey, Professor of Food Science, of Wisconsin- – 2024-07-24 07:18:57
Storing cheese wheels to let them age intensifies the flavor.
AP Photo/Antonio Calanni

John A. Lucey, University of Wisconsin-Madison

Cheese is a relatively simple food. It's made with milk, enzymes – these are proteins that can chop up other proteins – bacterial cultures and salt. Lots of complex chemistry goes into the cheesemaking process, which can determine whether the cheese turns out soft and gooey like mozzarella or hard and fragrant like Parmesan.

In fact, humans have been making cheese for about 10,000 years. Roman soldiers were given cheese as part of their rations. It is a nutritious food that provides protein, calcium and other minerals. Its long shelf life allows it to be transported, traded and shipped long distances.

I am a food scientist at the University of Wisconsin who has studied cheese chemistry for the past 35 years.

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In the U.S., cheese is predominantly made with cow's milk. But you can also find cheese made with milk from other animals like sheep, goats and even buffalo and yak.

Unlike with yogurt, another fermented dairy product, cheesemakers whey – which is water – to make cheese. Milk is about 90% water, whereas a cheese like cheddar is less than about 38% water.

Removing water from milk to make cheese results in a harder, firmer product with a longer shelf life, since milk is very perishable and spoils quickly. Before the invention of refrigeration, milk would quickly sour. Making cheese was a way to preserve the nutrients in milk so you could eat it weeks or months in the future.

How is cheese made?

All cheesemakers first pump milk into a cheese vat and add a special enzyme called rennet. This enzyme destabilizes the proteins in the milk – the proteins then aggregate together and make a gel. The cheesemaker is essentially turning milk from a liquid into a gel.

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After anywhere from 10 minutes to an hour, depending on the type of cheese, the cheesemaker cuts this gel, typically into cubes. Cutting the gel helps some of the whey, or water, separate from the cheese curd, which is made of aggregated milk and looks like a yogurt gel. Cutting the gel into cubes lets some water escape from the newly cut surfaces through small pores, or openings, in the gel.

The cheesemaker's goal is to remove as much whey and moisture from the curd as they need to for their specific recipe. To do so, the cheesemaker might stir or heat up the curd, which helps release whey and moisture. Depending on the type of cheese made, the cheesemaker will drain the whey and water from the vat, leaving behind the cheese curds.

A man in a white lab coat, hairnet and gloves pulls a device through a large tub of white liquid.
Wisconsin Master Cheesemaker Gary Grossen cuts a vat of cheese with a cheese harp during a cheesemaking short course at the Center for Dairy Research in Madison, Wis. Cutting helps release whey during the cheesemaking .
UW Center for Dairy Research

For a harder cheese like cheddar, the cheesemaker adds salt directly to the curds while they're still in the vat. Salting the curds expels more whey and moisture. The cheesemaker then packs the curds together in forms or hoops – these are containers that shape the curds into a block or wheel and hold them there – and places them under pressure. The pressure squeezes the curds in these hoops, and they knit together to form a solid block of cheese.

Cheesemakers salt other cheeses, like mozzarella, by placing them in a salt solution called a brine. The cheese block or wheel floats in a brine tank for hours, days or even weeks. During that time, the cheese absorbs some of the salt, which adds flavor and protects against unwanted bacterial or pathogen growth.

A graphic showing the many steps between a farmer harvesting milk from cows and the cheese reaching the consumer.
The cheese production process.
UW Center for Dairy Research

Cheese is a living, fermented food

While the cheesemaker is completing all these steps, several important bacterial processes are occurring. The cheesemaker adds cheese cultures, which are bacteria they choose that produce specific flavors, at the beginning of the process. Adding them to the milk while it is still liquid gives the bacteria time to ferment the lactose in the milk.

Historically, cheesemakers used raw milk, and the bacteria in the raw milk soured the cheese. Now, cheesemakers use pasteurization, a mild heat treatment that destroys any pathogens present in the raw milk. But using this treatment means the cheesemakers need to add back in some bacteria called starters – these “start” the fermentation process.

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Pasteurization provides a more controlled process for the cheesemaker, as they can select specific bacteria to add, rather than whatever is present in the raw milk.
Essentially, these bacteria eat (ferment) the sugar – the lactose – and in doing so produce lactic acid, as well as other desirable flavor compounds in the cheese like diacetyl, which smells like hot buttered popcorn.

In some types of cheese, these cultures stay active in the cheese long after it leaves the cheese vat. Many cheesemakers age their cheeses for weeks, months or even years to give the fermentation process more time to develop the desired flavors. Aged cheeses include Parmesan, aged cheddars and Gouda.

A person in a white coat holds a wheel of cheese.
A Wisconsin cheesemaker inspects a wheel of Parmesan in the aging room. Aging is an important step in the production of many cheeses, as it allows for flavor .
The Dairy Farmers of Wisconsin

In essence, cheesemaking is a milk concentration process. Cheesemakers want their final product to have the milk proteins, fat and nutrients, without as much of the water. For example, the main milk protein that is captured in the cheesemaking process is casein. Milk might contain about 2.5% casein content, but a finished cheese like cheddar may contain about 25% casein (protein). So cheese contains lots of nutrients protein, calcium and fat.

Infinite possibilities with cheese

There are hundreds of different varieties of cow's milk cheese made across the globe, and they all start with milk. All of these different varieties are produced by adjusting the cheesemaking process.

For some cheeses, like Limburger, the cheesemaker rubs a smear – a solution containing various types of bacteria – on the cheese's surface during the aging process. For others, like Camembert, the cheesemaker places the cheese in an (e.g., a cave) that encourages mold growth.

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Others like bandaged cheddar are wrapped with bandages or covered with ash. Adding a bandage or ash onto the cheese's surface helps protect it from excessive mold growth, and it reduces the amount of moisture lost to evaporation. This creates a harder cheese with stronger flavors.

A man in a white apron and hat stands in a room full of shelves stacked with cheese.
Wisconsin Master Cheesemaker Joe Widmer in his brick cheese aging room. Brick cheese is a smear-ripened cheese – it is produced by applying a salt solution to the exterior of the cheese as it ages.
Dairy Farmers of Wisconsin

Over the past 60 years, cheesemakers have figured out how to select the right bacterial cultures to make cheese with specific flavors and textures. The possibilities are endless, and there's no limit to the cheesemaker's imagination.The Conversation

John A. Lucey, Professor of Food Science, University of Wisconsin-Madison

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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