OpenAI wants to finally get rid of non-profit status and make real money

The entrepreneurially oriented people involved in the AI ​​specialist OpenAI have long been annoyed that the company is actually oriented towards the common good. This is now set to change through a restructuring of the entire structure.

Restructuring underway

According to sources familiar with the matter, OpenAI is set to be converted into a for-profit company, the news agency reports Reuters. The current non-profit board will no longer have control. According to the plans, the non-profit OpenAI organization will continue to exist, but will only hold a minority stake in the new for-profit structure.

This change could also change the way the company deals with the risks associated with artificial intelligence (AI), as a new governance structure will be created. Sam Altman, head of OpenAI, is also set to receive company shares for the first time. The restructuring could give OpenAI a valuation of up to $150 billion and remove the previously set return cap for investors.

OpenAI was founded in 2015 as a nonprofit to develop safe and widely useful “artificial general intelligence” (AGI). In 2019, the organization added for-profit subsidiary OpenAI LP to attract investors such as Microsoft.

The company then rose to global prominence with the launch of ChatGPT in 2022. The current restructuring also comes against the backdrop of leadership changes at OpenAI. Recently, longtime chief technology officer Mira Murati resigned, while president Greg Brockman is currently on leave.

Attract investors

The planned changes could give OpenAI more flexibility in the future, as the control provided by the non-profit structure will be removed. Investors welcome this development, as it brings OpenAI closer to the typical startup structure, which could make the company more attractive to other investors looking for high returns.

However, some experts also express concerns that these changes could jeopardize OpenAI’s original mission of creating a secure AGI, as the control mechanisms could potentially be weakened. The dissolution of the “Superalignment” team, which dealt with the long-term risks of AI, will also have to be considered in this context.