A report says that OpenAI will switch to a for-profit structure soon, along with a massive new round of investments, and provide CEO Sam Altman with equity.
Open AI describes its business structure as “a partnership between our original Nonprofit and a new capped profit arm,” which has been a contributing factor in last year’s short-lived board coup against CEO Sam Altman and a recent lawsuit by co-founder Elon Musk. But that’s reportedly set to change along with a massive new funding round that’s still being negotiated but could value the ChatGPT maker at more than $150 billion.
It says that in the new structure, OpenAI would proceed as a for-profit benefit corporation, like rival AI company Anthropic. That business would “no longer be controlled by its non-profit board” and become more attractive to investors, with the non-profit maintaining a minority ownership stake. However, for those concerned with OpenAI’s approach to safety vs. potential profits, it may be unsettling as the company pursues AI models capable of reasoning.
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