OpenAI Moves Towards For-Profit Status Amid Leadership Changes

OpenAI is reportedly moving towards becoming a for-profit benefit corporation, following the recent departures of key executives, including Chief Technology Officer Mira Murati, The Gurdian reported yesterday.

The San Francisco-based company is seeking $6.5 billion in new funding and plans to change its corporate structure, which would allow it to operate without the oversight of its nonprofit board. Despite these changes, OpenAI stated that its nonprofit entity will continue to exist, emphasizing its commitment to building AI for the public good.

CEO Sam Altman clarified that the leadership changes are not linked to the restructuring, describing them as a natural transition. OpenAI, founded as a nonprofit in 2015, introduced a capped profit subsidiary in 2019 with Microsoft as a major investor. The new structure could lead to a valuation of $150 billion, attracting potential investors like Apple and Nvidia.