TechFlow news, according to TechCrunch, OpenAI plans to change its complex corporate structure. Earlier this week, reports indicated the company is in talks to raise $6.5 billion at a pre-valuation of $150 billion. According to Reuters, the deal hinges on OpenAI's ability to restructure and remove profit caps for investors.
Fortune reported that co-founder and CEO Sam Altman told employees during an all-hands meeting that OpenAI’s structure will likely change next year, moving it closer to a traditional for-profit company. OpenAI’s current structure—where its for-profit arm is controlled by a nonprofit entity—has apparently disappointed investors.
In a statement, OpenAI said: “We remain focused on building AI that benefits everyone. As we’ve said before, we are working with the board to ensure we’re best positioned to accomplish our mission.” “The nonprofit is core to our mission and will continue to exist.”
