Despite being governed by its non-profit arm, OpenAI has received billions in investment from private investors, a practice not followed by other tech companies led by non-profit organizations, such as Mozilla. OpenAI's organizational structure and relationship with Microsoft are under scrutiny by trade regulators, with the UK's Competition and Markets Authority and the US Federal Trade Commission considering whether OpenAI's partnership with Microsoft constitutes a merger and if it might have violated antitrust laws.
Key takeaways:
- OpenAI's non-profit arm reported revenues of just $44,485 in its latest US tax filing, while its for-profit business is likely making millions from ChatGPT.
- The non-profit unit is technically exempt from paying income tax and submitting audited financial statements for 2022 as it made less than the $2 million limit.
- Microsoft invested $10 billion for a 49 percent stake into the company earlier this year, despite OpenAI being governed by its non-profit side.
- OpenAI's organizational structure and relationship with Microsoft is being investigated by trade regulators, including the UK's Competition and Markets Authority and the US Federal Trade Commission.