TechFlow news — According to The Information, OpenAI is considering shifting from a capped-profit structure to an uncapped for-profit model. During the week of June 10, CEO Sam Altman informed shareholders that this transition could result in the nonprofit board losing control over the company.
OpenAI is currently valued at approximately $86 billion. The company's website describes its current structure as a partnership between a nonprofit organization and a capped-profit subsidiary.
The profit cap was originally designed to incentivize research in artificial general intelligence (AGI) while preserving the company's mission. As to why such a change is needed, OpenAI stated that the "donations" required to support its work have been insufficient, necessitating a new model for injecting capital to better incentivize stakeholders.
