OpenAI is reportedly considering altering its corporate structure to become more investor-friendly as it plans another funding round valued at over $100 billion.
Planned Funding Round
According to a report from the Financial Times, OpenAI is conducting talks both internally and with potential investors concerning altering its current 'capped for-profit' structure. The company is reportedly planning another funding round with an expected valuation in excess of $100 billion.
Major Tech Investors
The reported funding round would be led by Thrive Capital with an investment of about $1 billion. Microsoft, Apple, and Nvidia are also linked as potential investors. Microsoft currently owns a minority stake in the company, but it’s unclear how a new valuation and the entrance of other tech giants like Nvidia and Apple would change the dynamics.
Current Company Structure
Currently, OpenAI operates as both a non-profit organization and a capped for-profit company. The board of directors oversees both operations with the primary goal of maintaining the nonprofit's mission. Investors like Microsoft, who've put money into the capped for-profit side of the enterprise, can only earn a limited yield on any profits generated by OpenAI. Removing these caps would allow OpenAI to incentivize investors with payouts limited only by the company’s ability to generate profits. It remains unclear how this move will affect the non-profit division of the company or whether the board members will be able to simultaneously assure investors and stakeholders of profitability without compromising its mission to serve humanity.
The potential changes to OpenAI's corporate structure are drawing considerable interest from major tech companies, which could significantly influence the company's future and strategic direction.
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