OpenAI’s Complex Structure May Change Amid Massive Funding Round

According to TechCrunch, OpenAI is increasingly likely to alter its intricate company structure. Earlier this week, reports surfaced that the company was in talks to raise $6.5 billion at a pre-money valuation of $150 billion. Reuters now reports that this deal hinges on OpenAI restructuring and removing profit caps for investors.

According to Fortune, co-founder and CEO Sam Altman told employees in an all-hands meeting that OpenAI’s structure is likely to change next year, bringing it closer to a traditional for-profit company. OpenAI’s current structure, where its for-profit arm is controlled by a non-profit organization, has reportedly frustrated investors.

In a statement, OpenAI said, "We remain focused on building AI that benefits everyone, and as we have previously stated, we are working with our board to ensure we are best positioned to fulfill our mission. The non-profit is core to our mission and will continue to exist."