Technology
OpenAI may change its nonprofit structure next year
It looks increasingly likely that OpenAI will soon change its complex corporate structure.
Reports earlier this week suggested the AI company was in talks to boost $6.5 billion at a pre-funding valuation of $150 billion. Now Reuters reports that The deal is contingent on OpenAI successfully restructuring and lifting the profit cap for investors.
In fact, based on FortuneCo-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure will likely change next year, bringing it closer to a standard for-profit business. OpenAI is currently structured in order that its for-profit arm is controlled by a nonprofit, which seems to have frustrated investors.
“We remain focused on building AI that benefits everyone, and as we’ve said before, we’re working with our board to ensure we’re best positioned to deliver on our mission,” OpenAI said in an announcement. “The nonprofit is core to our mission and will continue to exist.”