OpenAI CEO Says Company Could Become a For-Profit Corporation Like xAI, Anthropic - Slashdot
Jun 15, 2024 - slashdot.org
OpenAI, an artificial intelligence developer, has reportedly doubled its annualized revenue to $3.4 billion in the last six months, up from around $1 billion last summer. CEO Sam Altman has informed shareholders that the company is contemplating changing its governance structure to a for-profit business, potentially a benefit corporation, which would not be controlled by OpenAI's nonprofit board. This could pave the way for an initial public offering of OpenAI, currently valued privately at $86 billion.
The restructuring discussions are ongoing and the final decision could differ from the current considerations. In response to queries, OpenAI stated that it remains focused on its mission of building AI that benefits everyone and that the nonprofit is core to their mission and will continue to exist. This statement does not rule out the possibility of OpenAI becoming a for-profit business with a spin-off nonprofit.
Key takeaways:
OpenAI has doubled its annualized revenue in the last six months, now standing at $3.4 billion.
OpenAI CEO Sam Altman has hinted at a possible change in the company's governance structure to a for-profit business.
One of the options being considered is a for-profit benefit corporation, a model used by rivals such as Anthropic and xAI.
This change could potentially lead to an initial public offering of OpenAI, which currently has a private valuation of $86 billion.
