After unveiling a multitude of features, OpenAI recently announced plans to undergo a restructuring in 2025, establishing a profit-oriented company to secure essential funding. This move aims to accelerate the development of its original nonprofit framework with the support of the newly formed entity.
OpenAI stated that its ultimate goal is to create Artificial General Intelligence (AGI). To achieve this ambitious objective, the organization previously declared in 2019 the necessity of raising at least $10 billion. Under the constraints of its original nonprofit model, which imposed profit caps, reaching this financial target proved challenging. Consequently, a transition to a profit-driven structure became imperative, enabling partnerships with a broader array of investment opportunities to advance its foundational mission.
To this end, OpenAI will transform its existing profit-oriented entity into a Delaware Public Benefit Corporation. By issuing common stock aligned with the company’s original mission, OpenAI seeks to sustain its commitment to public benefit while fostering the growth of its nonprofit framework and realizing its vision of leveraging AI to drive digital transformation for all.
In 2019, OpenAI secured over $100 million during its initial funding round and subsequently received a $1 billion investment from Microsoft. This October, it raised an additional $6.6 billion, boosting its valuation to $157 billion. Despite an anticipated $3.7 billion in revenue this year, high operational costs have resulted in a $5 billion deficit, prompting OpenAI to explore new strategies to achieve sustainable profitability.
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