OpenAI is reportedly going all-in as a for-profit company
OpenAI plans to transition to a for-profit model by 2025 to enhance its valuation to $150 billion, while maintaining its nonprofit arm essential to its mission.
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OpenAI is planning a significant restructuring in 2025, shifting from its current nonprofit framework to a traditional for-profit model. This change aims to enhance its valuation, potentially reaching $150 billion, and aligns OpenAI with other profit-driven tech companies in Silicon Valley. CEO Sam Altman indicated that the organization has "outgrown" its original structure, which currently operates as a "capped" for-profit LLC under a nonprofit parent. This structure previously allowed the board to dismiss Altman in late 2023 over allegations of misconduct, although he was later reinstated. As OpenAI navigates its growth, it is reportedly under pressure from investors, including Apple and Microsoft, to abandon its profit cap, which may necessitate altering or eliminating the nonprofit controlling entity. Despite these changes, OpenAI maintains that its nonprofit arm is essential to its mission and will continue to exist, emphasizing its commitment to developing AI that benefits everyone.
- OpenAI plans to transition to a for-profit model by 2025.
- The restructuring aims to increase the company's valuation to $150 billion.
- CEO Sam Altman stated the organization has outgrown its nonprofit structure.
- Investors are pushing for the removal of OpenAI's profit cap.
- OpenAI's nonprofit arm will remain integral to its mission.
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13 commentsStart a non-profit with a noble mission. Get $130.5 million in donations without giving out any shares. Make a product. Renounce non-profit mission. Convert to a for-profit.
Not exactly a denial that the nonprofit board is going to lose all its governance powers and become a rump (just a shell for enough equity to provide a fiduciary defense to fend off the inevitable lawsuits).
"Currently, we don't have a solution for steering or controlling a potentially superintelligent AI, and preventing it from going rogue"[0] -OpenAI
Ya don't say?
- No one ever
They literally are thieves of the world's entire intellectual output. "For training the model", they say.
Yeah, there's a lot of bullshit going around.
We knew this would happen after the board tried to prevent it and failed.
"As we get closer to building AI, it will make sense to start being less open. The Open in OpenAI means that everyone should benefit from the fruits of AI after its built, but it's totally OK to not share the science (even though sharing everything is definitely the right strategy in the short and possibly medium term for recruitment purposes)."
-Ilya Sutskever (email to Elon musk and Sam Altman, 2016)
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