It increasingly looks like OpenAI will soon be changing its complex corporate structure.
Reports earlier this week indicated that the AI company was in talks to raise $6.5 billion at a pre-funding valuation of $150 billion. Reuters says The deal depends on whether OpenAI is able to restructure and remove the profit cap for investors.
In reality, According to Fortune magazineOpenAI co-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure is likely to change next year, making it more like a traditional for-profit business. OpenAI is currently structured so that its for-profit arm is controlled by a nonprofit foundation, which appears to frustrate investors.
“We remain focused on building AI that benefits everyone and, as we have previously stated, are working with our board to ensure we are best positioned to succeed in our mission,” OpenAI said in a statement. “The nonprofit is at the core of our mission and will continue to exist.”