OpenAI weighs changes to corporate structure amid latest funding talks

OpenAI is considering changes to its corporate structure to attract more investors as it seeks to raise funds at a valuation exceeding $100 billion. The discussions involve simplifying its current complex non-profit framework, which has been a point of contention among investors. The potential restructuring aims to make the company more appealing to financial backers, particularly as it engages in a fundraising round led by Thrive Capital, with participation from tech giants Apple, Nvidia, and Microsoft. If successful, this funding round could position OpenAI as one of the most valuable tech startups in Silicon Valley history. Currently, OpenAI operates with a unique structure where its for-profit subsidiary is governed by a non-profit board, which prioritizes humanity's benefit over investor profits. This structure has faced scrutiny, especially following a recent lawsuit from co-founder Elon Musk, who argues that OpenAI has strayed from its mission. The company has received significant funding from Microsoft, totaling $13 billion since 2019, but investors are advocating for a more traditional investment model without profit caps. OpenAI maintains that its non-profit mission remains central to its operations, even as it explores options to enhance its financial viability.

- OpenAI is exploring changes to its corporate structure to attract more investors.

- The company is in talks for a funding round that could value it over $100 billion.

- Current structure prioritizes humanity's benefit over investor profits, which has drawn criticism.

- Major tech companies like Apple, Nvidia, and Microsoft are considering participation in the funding round.

- Investors are pushing for a more traditional investment model without profit caps.