OpenAI is well on its way to becoming a for-profit company governed by a nonprofit board of directors, which could be compensated with royalties.
This is according to the New York Times, which reports that OpenAI is in talks to pay billions of dollars to a nonprofit group to transfer control. There is pressure to close the deal. OpenAI will reportedly have to change its corporate structure within two years or the company's recently raised $6.6 billion will be converted into debt.
“Non-profit and for-profit exist within a single corporate structure, and how do we reconfigure that?” OpenAI board chairman Brett Taylor said Tuesday at Axios' AI+ Summit in San Francisco. I'm thinking about it.''
OpenAI CEO Sam Altman founded OpenAI as a nonprofit organization in 2015 with several AI researchers and entrepreneurs. By 2018, some within the group, which had struggled to raise enough money to fuel its ambitions, decided to create a for-profit organization that could accommodate investors while still catering to nonprofit board input. agreed to a new corporate structure called OpenAI.