OpenAI Considers Reorganizing as For-Profit, with Key Developments

TapTechNews September 26th news, OpenAI was established as a non-profit AI research organization in 2015 and obtained a large amount of funds from Microsoft through the for-profit subsidiary OpenAILP entity in 2019 for AI research and development.

According to Reuters, OpenAI is considering reorganizing its core business into a for-profit company and giving Sam Altman about 7% of the equity. That is to say, the non-profit board of the company will no longer control it, which also means that OpenAI will be more attractive to investors.

Currently, it is a tumultuous time for OpenAI. Its chief technology officer, Mira Murati, suddenly announced her departure today, and OpenAI president Greg Brockman has also taken leave.

Insiders said that this plan is still being discussed with lawyers and shareholders, and the timetable for the completion of the reorganization is still unclear. It is said that the OpenAI non-profit organization will continue to exist and hold a minority stake in the for-profit company.

He also mentioned that the value of the company after the reorganization may reach 150 billion US dollars (TapTechNews note: currently about 1.05 trillion RMB), and equity will be granted to the current CEO Altman.

The OpenAI spokesperson said, We are still focused on developing AI that benefits everyone, and we are working with the board to ensure that we can continue to achieve complete success in our mission. The non-profit organization is at the core of our mission and will continue to exist.