There is a growing possibility that OpenAI will soon modify its intricate organizational structure.
Earlier in the week, rumors circulated that the AI powerhouse was negotiating to gather $6.5 billion at a pre-cash valuation of $150 billion. Reuters now suggests that this deal hinges on OpenAI’s ability to reorganize and lift the profit limit for its backers.
Indeed, as per Fortune, the company’s co-founder and CEO, Sam Altman, informed staff in a company-wide conference that OpenAI’s framework is set to undergo changes next year. This could see the firm align more with a conventional for-profit model. Currently, the for-profit wing of OpenAI is overseen by a non-profit, a setup that seems to displease investors.
OpenAI issued a statement saying, “Our focus remains on developing AI for the greater good. As we’ve shared previously, we’re collaborating with our board to make sure we’re best positioned to accomplish our mission. Our non-profit foundation remains fundamental to our mission and will persist.”