Artificial Intelligence company OpenAI is reportedly considering a significant overhaul of its corporate structure, with potential changes on the horizon for next year.
The company, known for its groundbreaking work in AI, is currently in talks to raise USD 6.5 billion in funding at a pre-money valuation of USD 150 billion. However, reports indicate that the deal may be contingent on whether OpenAI can adjust its complex structure, particularly by removing a cap on investor profits.
At present, OpenAI operates under a unique model in which its for-profit arm, OpenAI LP, is controlled by a non-profit organisation, OpenAI Inc. This structure was originally designed to align the company’s mission of advancing AI for the benefit of humanity with the demands of commercial investors. However, this arrangement has reportedly frustrated some investors, who feel constrained by the capped returns it imposes.
According to recent reports, CEO Sam Altman informed employees during a company-wide meeting that OpenAI is likely to shift closer to a traditional for-profit model in the near future. Such a move could appease investor concerns and open the door for the substantial funding round currently under negotiation.
Despite the potential changes, OpenAI mentioned in a statement that its core mission remains unchanged. The company affirmed its focus on building AI that benefits everyone, adding that its non-profit arm will continue to play a central role.
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