The company has recently secured record levels of funding, raising $6.6 billion in its latest funding round. A for-profit structure would be more conventional for the high-profile investors OpenAI is attracting, including Microsoft and Nvidia. The transition process will likely involve a regulatory investigation into how OpenAI values its services and will require changes to its structure under Delaware law and its certificate of incorporation.
Key takeaways:
- OpenAI is in preliminary discussions with California's attorney general's office about transitioning from a nonprofit to a for-profit entity.
- The company, led by Sam Altman, announced in September that it planned to fully embrace profit, nearly a decade after launching as a nonprofit research organization.
- OpenAI has secured historic levels of funding, raising a record $6.6 billion in its most recent funding round, attracting big-name investors like Microsoft and Nvidia.
- The shift to a for-profit structure will likely involve a regulatory probe into how OpenAI values its services and will require changes to its structure under Delaware law and its certificate of incorporation.