OpenAI Considers Transitioning to For-Profit Model as Investors Seek Bigger Returns
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OpenAI is preparing to shift from its non-profit roots to a for-profit model next year, aiming to make its structure more straightforward and attract larger investments. This move comes after growing frustration among investors and staff about the company's current setup, which combines a non-profit overseeing multiple for-profit entities.
During a recent all-staff meeting, CEO Sam Altman shared the news, explaining that the complex structure had become outdated and hindered the company’s ability to manage commercial products effectively. While exact details of the restructuring have not been revealed, Altman confirmed the shift away from non-profit control.
For months, there have been rumors that OpenAI would undergo significant changes. The goal is to align the company with industry standards and provide clearer returns for investors, according to various reports.
New Funding and Potential Valuation Boost
OpenAI is currently seeking $6.5 billion in new funding to accelerate its AI development. Major players such as Apple, Nvidia, Microsoft, and Thrive Capital are expected to participate. If the restructuring goes as planned, this investment could push OpenAI’s valuation to $150 billion, positioning it as one of the world’s most valuable private companies.
The restructuring is also expected to remove the current profit cap on returns, which has been a point of contention for investors. With these changes, OpenAI hopes to strengthen its competitive edge in the race for artificial general intelligence (AGI) against rivals like Google, Meta, and Anthropic.
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