OpenAI Plans Potential Overhaul of Nonprofit Structure

OpenAI is poised to potentially revise its intricate corporate framework. Recent reports indicate the AI company is negotiating a $6.5 billion funding round at a $150 billion pre-money valuation. Reuters notes that this deal hinges on OpenAI’s ability to restructure and eliminate the profit cap for investors.According to Fortune, co-founder and CEO Sam Altman informed employees that significant structural changes are expected next year, possibly aligning OpenAI more closely with a traditional for-profit model. Currently, OpenAI’s for-profit segment is governed by a nonprofit entity, which has reportedly frustrated investors.OpenAI reaffirmed its commitment to its mission, stating, “We remain focused on building AI that benefits everyone and, as previously shared, we’re working with our board to ensure we’re well-positioned for success. The nonprofit remains central to our mission and will continue to exist.”