9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Starting next year, OpenAI would no longer be a nonprofit organization, but a traditional for-profit organization. It would remain a nonprofit division. According to a source told Fortune,
Starting next year, OpenAI would no longer be a nonprofit organization, but a traditional for-profit organization. It would remain a nonprofit division.
According to a source told Fortune, OpenAI CEO Sam Altman told employees in an internal meeting that OpenAI will be moving away from its nonprofit corporate structure next year. The company will no longer be controlled by a nonprofit organization, but will transition to a more traditional, for-profit organization. Altman has not yet disclosed what exactly that structure will look like.
OpenAI’s current corporate structure may be coming to an end. Currently, it is quite complex, with a nonprofit organization overseeing a for-profit arm, a holding company, and another for-profit organization. This often leads to frustration among investors and confusion among employees working on a commercial product.
Altman reportedly acknowledged the complex structure during the meeting. The CEO said that next year they will move away from that structure and move more toward a traditional for-profit company, but it will still have a nonprofit division. According to a spokesperson to Fortune, the company remains focused on “developing AI that benefits everyone” and will “remain nonprofit at the core of its mission.”
In this current structure, profits are capped. Anything above that limit goes to the nonprofit division. In the new structure, that profit limit would disappear. That’s good news for early investors, but bad news for future proceeds, which no longer go to the nonprofit.
OpenAI’s revenue has skyrocketed recently. The company is currently working on a new funding round valued at $6.5 billion. In addition, its popular chatbot ChatGPT recently reached 200 million weekly users.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
