OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

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While OpenAI already has a for-profit division, where most of its staff works, it is controlled by a nonprofit board whose mission is to help humanity.

FILE – Open AI Chief Executive Officer Sam Altman speaks at the Advancing Sustainable Development through Safe, Secure, and Trustworthy AI event on Sept. 23, 2024, in New York. OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said. “We remain focused on building AI that benefits everyone and as we’ve previously shared we’re working with our board to ensure that we’re best positioned to succeed in our mission,” it said in a written statement. “The nonprofit is core to our mission and will continue to exist.”

Altman asserted Thursday that the resignations of Murati, Chief Research Officer Bob McGrew and another research leader, Barret Zoph, were “just about people being ready for new chapters of their lives and a new generation of leadership.” It may not be easy to change OpenAI’s corporate structure, even if it’s designed to make investors and employees happy.

A few years later, the organization realized it needed billions of dollars to finance the computing power required to develop AI technologies.

 

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