OpenAI could shake up its nonprofit structure next year | TechCrunch
Sep 14, 2024 - news.bensbites.com
OpenAI is reportedly considering a change in its corporate structure, potentially moving towards a more traditional for-profit model. The AI company is currently in talks to raise $6.5 billion at a $150 billion pre-money valuation, with the deal hinging on whether OpenAI can restructure and remove a profit cap for investors. The current structure, where the for-profit arm is controlled by a non-profit, has reportedly frustrated investors. OpenAI's co-founder and CEO, Sam Altman, has indicated that the company's structure is likely to change next year.
In other news, OpenAI has unveiled a preview of its new model, OpenAI o1, also known as Strawberry. The company claims that this model can more effectively reason through math and science, as well as fact-check. OpenAI also released its new o1 models, designed to pause and "think" before answering, which has generated significant interest.
Key takeaways:
OpenAI is likely to alter its corporate structure, removing a profit cap for investors and moving closer to a traditional for-profit business model.
The AI company is reportedly in talks to raise $6.5 billion at a $150 billion pre-money valuation.
OpenAI's new model, o1, also known as Strawberry, has been unveiled, which is claimed to reason through math and science more effectively.
OpenAI's restructuring is contingent on whether it can restructure and is expected to take place next year.
