OpenAI Transforms Non-Profit Model with Groundbreaking Business Shift

OpenAI wants to attract investors by converting into a for-profit benefit corporation, but it will still have a nonprofit mission. The new company could be worth $150 billion.

OpenAI is planning a big change to its business structure, moving away from its nonprofit roots. A source says that the company that made ChatGPT is planning to change its main business into a for-profit benefit corporation that will be separate from its non-profit board to attract investors.

According to the report, OpenAI, which is not for profit, will continue to work and have a small stake in the for-profit company. Other sources say that the for-profit business, whose goal is to give investors the best return possible, could be worth $150 billion after the restructuring.

CEO Sam Altman will own some company shares for the first time. The sources prefer to remain anonymous as they wish to discuss confidential matters. “Our goal is still to make AI that helps everyone, and we’re working with our board to make sure we have the best tools to reach that goal.” “The nonprofit is an important part of our mission and will stay around,” an OpenAI spokesperson said.

However, Reuters first reported on the planned organizational structure. They illuminated significant transformations occurring within the operations of one of the largest AI companies. According to sources, the restructuring’s end date remains uncertain as shareholders and lawyers continue to refine the plan.