New report details OpenAI's plan to switch to for-profit mode
A major shakeup is in the works at OpenAI. Reuters reported that the artificial intelligence research company is restructuring its business from a non-profit board into a for-profit corporation. The publication also says Sam Altman would be given equity in the new corporation. OpenAI’s move to for-profit wouldn’t eliminate its non-profit entity entirely. The non-profit would own a stake in the new for-profit venture but it won’t have nearly the power as it did. An OpenAI spokesperson gave a statement that’s identical to the one they gave to Fortune’s initial report about the restructuring. Couldn’t they at least have used OpenAI’s software to word a different statement? "We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist.” The move to for-profit would also provide a big payday for chief executive officer Sam Altman. Reuters says he would receive equity in the company once the restructuring is complete. The for-profit company’s worth could go as high as $150 billion, according to some estimates. The for-profit model would also remove the cap on investors’ returns. Altman has reportedly been trying to move OpenAI to a more traditional for-profit company for some time. It’s not known exactly when the switch will happen since details of the deal are still going through all of the legal motions.This article originally appeared on Engadget at https://www.engadget.com/ai/new-report-details-openais-plan-to-switch-to-for-profit-mode-214354224.html?src=rss
A major shakeup is in the works at OpenAI. Reuters reported that the artificial intelligence research company is restructuring its business from a non-profit board into a for-profit corporation. The publication also says Sam Altman would be given equity in the new corporation.
OpenAI’s move to for-profit wouldn’t eliminate its non-profit entity entirely. The non-profit would own a stake in the new for-profit venture but it won’t have nearly the power as it did. An OpenAI spokesperson gave a statement that’s identical to the one they gave to Fortune’s initial report about the restructuring. Couldn’t they at least have used OpenAI’s software to word a different statement?
"We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist.”
The move to for-profit would also provide a big payday for chief executive officer Sam Altman. Reuters says he would receive equity in the company once the restructuring is complete. The for-profit company’s worth could go as high as $150 billion, according to some estimates. The for-profit model would also remove the cap on investors’ returns.
Altman has reportedly been trying to move OpenAI to a more traditional for-profit company for some time. It’s not known exactly when the switch will happen since details of the deal are still going through all of the legal motions.This article originally appeared on Engadget at https://www.engadget.com/ai/new-report-details-openais-plan-to-switch-to-for-profit-mode-214354224.html?src=rss
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