OpenAI to begin 'for-profit' transition: What will change for ChatGPT?

12PUNTO FOREIGN NEWS

ChatGPT creator OpenAI will largely abandon its non-profit status to form a 'for-profit' company. In the new structure, which will split OpenAI into two separate entities, the non-profit organization will become a minority partner in the newly established for-profit structure. The goal of this move by OpenAI is to make the company more attractive to investors.

Chief Executive Officer Sam Altman plans to secure a 150 billion dollar investment for the new company. It is also alleged that Altman will attempt to transform this new for-profit company into a structure without a 'maximum profit cap' for investors.

Sources speaking to Reuters reported that the non-profit OpenAI will continue to exist and will hold a minority stake in the for-profit company.

According to the claims, OpenAI will continue to offer its services without a profit motive. However, updates and newly developed technologies will begin to be offered by OpenAI 'according to for-profit policies.'

An OpenAI official, who requested anonymity, stated the following regarding the matter:

'We remain focused on building AI that benefits everyone, and we are working with our board to ensure we are best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist.'

OpenAI Chief Executive Officer Sam Altman

MANAGEMENT TEAM CHANGES AS OPENAI RESTRUCTURES

The restructuring also comes amidst a series of management changes at the company. OpenAI's long-time Chief Technology Officer Mira Murati announced her sudden departure from the company on Wednesday. OpenAI President Greg Brockman, meanwhile, has been on leave for a 'long time.'

Sources said the plan is still being discussed with lawyers and shareholders, and the timeline for completing the restructuring remains uncertain.

News Source: 12punto