Sam Altman has told OpenAI staff members during their weekly meeting that the company is changing its rather convoluted non-profit corporate structure next year, according to Fortune. The CEO said OpenAI will move away from being controlled by a non-profit entity and will transition into a more traditional for-profit organization. He didn’t delve into the specifics of how the company will achieve that goal and what OpenAI’s corporate structure will look like exactly. A spokesperson only told Fortune that it remains “focused on building AI that benefits everyone” and that non-profit is “core to [its] mission and will continue to exist.”
OpenAI started as a non-profit organization in 2015 that relied on money from donors. In a page explaining its structure, it said that it only raised $130.5 million in total donations over the years, which it says made it clear that “donations alone would not scale with the cost of computational power and talent required to push [its] core research forward.” The then-purely non-profit organization created a for-profit subsidiary in order to solve that problem. As Fortune explains, OpenAI’s non-profit entity currently controls its for-profit arm, which in turn controls a holding company that takes investments from companies like Microsoft.
Under this structure, the profit that can be allocated to investors, including Microsoft, has a cap. Anything OpenAI makes beyond the cap will go to its non-profit division. And the company’s revenue is booming, according to a report by The Information published in June. OpenAI reportedly doubled its annualized revenue in the first half of the year, thanks to the subscription version of ChatGPT.
The company’s complex structure also allowed OpenAI’s non-profit board of directors to oust Altman in 2023, because they “no longer [have] confidence in his ability to continue leading OpenAI.” Five days later, however, the board was disbanded and replaced, while Altman was reinstated as CEO.
This article contains affiliate links; if you click such a link and make a purchase, we may earn a commission.
Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
Hanes Men's Boxer Briefs, Soft and Breathable Cotton Underwear with ComfortFlex Waistband, Multipack
$21.96 (as of March 14, 2025 20:23 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Custom Easter Bunny Custom Bunny Stuffed Animals With Child's Name Handmade Personalized Plush Rabbit Toy for Girls Boys Kids
$13.99 (as of March 14, 2025 19:47 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Massive Beads Black Obsidian - Stone of Pleasure - Handmade Yoga Stretch Elastic Bracelet Natural Stone Crystal Healing Power Energy Gifts for Unisex Adult 4mm
$5.99 (as of March 14, 2025 20:23 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Stanley Quencher H2.0 Tumbler with Handle and Straw 30 oz | Flowstate 3-Position Lid | Cup Holder Compatible for Travel | Insulated Stainless Steel Cup | BPA-Free | Fuchsia
$26.25 (as of March 14, 2025 20:23 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
