OpenAI Prepares to Transition to a For-Profit Business Model

DNVN - According to information from Bloomberg on November 4, OpenAI is in the initial stages of negotiations with the California Attorney General's Office to change its organizational structure, moving towards a for-profit operating model.

A California source said the company has been in talks with Attorney General Rob Bonta's office and is expected to file detailed documents on its restructuring plan once it finalizes the proposal.

The media outlet reached out to OpenAI and the California Attorney General’s Office for confirmation. OpenAI declined to comment on ongoing negotiations, but stressed that its nonprofit board would remain in place in any restructuring plan.

A spokesperson for the California Attorney General's Office said in a statement that the agency is “committed to protecting assets in the public interest” but did not elaborate on its discussions with OpenAI.

The transition to a for-profit business model would be a major shift in the governance structure of OpenAI, a pioneer in the field of artificial intelligence.

Since its founding in 2015, OpenAI has operated as a nonprofit research organization with a mission to advance artificial intelligence for the benefit of all humanity. However, the new for-profit structure will help OpenAI attract more investors, while also raising questions about the company’s ability to maintain its public-interest mission.

Last month, ChatGPT's developer closed a $6.6 billion funding round, valuing OpenAI at $157 billion, making it one of the most valuable private companies in the world.

Reuters reported in September that OpenAI was considering restructuring its operations as a for-profit company, freeing it from its nonprofit board. However, sources said that OpenAI’s nonprofit board would continue to exist and would retain a minority stake in the commercial company.

Hung Le (t/h)

Source: https://doanhnghiepvn.vn/cong-nghe/openai-chuan-bi-chuyen-doi-sang-mo-hinh-doanh-nghiep-vi-loi-nhuan/20241106095102375