OpenAI moving towards for-profit status

OpenAI is reportedly advancing plans to transition into a for-profit entity following the unexpected departure of its chief technology officer, Mira Murati. The San Francisco-based organization is preparing to restructure as it seeks to raise $6.5 billion in new funding.

According to reports, the new structure will establish OpenAI as a for-profit benefit corporation, allowing it to generate profits while still focusing on social good. This change would remove control from the nonprofit board, although the nonprofit aspect will remain intact. A spokesperson emphasized that the nonprofit mission is still central to their goals, Caliber.Az reports via foreign media.

Founded as a nonprofit in 2015, OpenAI introduced a for-profit subsidiary four years later, with Microsoft as its primary investor. The organization describes itself as a partnership between the original nonprofit and a new capped-profit division.

With these changes, OpenAI is eyeing a valuation of around $150 billion, comparable to companies like Uber. Potential investors for this funding round include Apple and Nvidia.

However, the pursuit of artificial general intelligence (AGI) has raised concerns among former employees. William Saunders, a research engineer who recently left, expressed doubts about OpenAI's commitment to responsible AGI development. Similarly, Jan Leike, a former safety researcher, claimed the company was prioritizing flashy products over safety measures. In response, CEO Sam Altman acknowledged the need for improvement.

The restructuring coincides with multiple senior staff departures, including Murati, who played a key role in launching OpenAI’s GPT-4o model. Shortly after her exit, two other colleagues, Barret Zoph (VP of Research) and Bob McGrew (Chief Research Officer), also announced their resignations. Altman noted that these departures, though coinciding, were made independently and amicably, suggesting a smooth transition for future leadership.

He remarked that such leadership changes are typical in companies, although he recognized the abrupt nature of these departures at OpenAI.