OpenAI, the leading artificial intelligence company, is reportedly considering transitioning from its current capped-profit structure to a full for-profit model.
This potential shift, first reported by The Information, was allegedly discussed by CEO and co-founder Sam Altman with shareholders in mid-June.
If this change occurs, OpenAI’s non-profit board could lose its control over the company.
Currently, OpenAI operates as a partnership between its original non-profit entity and a capped-profit arm.
This structure was designed to balance profit motives with the company’s mission to advance artificial general intelligence (AGI) research.
OpenAI, valued at around $86 billion, initially adopted the capped-profit model to attract necessary funding while maintaining its commitment to its vision.
The company explained that traditional donations were insufficient to support its ambitious goals, necessitating a structure that could bring in more substantial investments.
Despite this, OpenAI continues to caution that investments should be seen as high-risk, akin to donations, given the uncertainties in a post-AGI world.
As OpenAI explores this potential structural shift, Sam Altman has been reshaping the company’s board.
New members include notable figures such as Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former Sony VP; Fidji Simo, CEO of Instacart; and retired U.S. Army General and former NSA Director Paul Nakasone.
Nakasone’s appointment has sparked criticism from former intelligence contractor Edward Snowden.
