Key points:

  • OpenAI is transitioning from a nonprofit model by separating its main commercial activities into an independent company.
  • The CEO will become a shareholder of the commercial part of the company.
  • Commercialization may make OpenAI more competitive in the AI market.

OpenAI, the company behind the development of ChatGPT, is undergoing a significant transformation of its business model. According to available information, the nonprofit organization plans to separate its core operations into an independent commercial entity that will operate independently from the current board of directors.

The nonprofit segment of OpenAI will continue to exist, but its role will be reduced to owning a smaller share of the new commercial company. This transformation could significantly impact the risk management principles associated with artificial intelligence within the new organizational structure.

Sam Altman to acquire a stake in the commercial sector

OpenAI, the developer of the popular ChatGPT chatbot, is preparing for a major reorganization. According to sources familiar with the situation, CEO Sam Altman will acquire a stake in the commercial part of the company for the first time, which could be valued at $150 billion following the restructuring. At the same time, work is underway to remove limitations on investor returns.

A representative of OpenAI emphasized that the company remains committed to its mission of creating beneficial artificial intelligence for all, and that the nonprofit organization will continue its activities. However, the details of the proposed corporate structure indicate significant changes in the management of one of the leading AI companies.

The restructuring plans are still under discussion with lawyers and investors, and no specific timeline for the completion of the process has been set.

Founded in 2015 as a nonprofit, OpenAI created a commercial division in 2019, attracting investments from Microsoft to fund its research. Following the phenomenal success of ChatGPT, the company’s valuation has significantly increased, drawing the attention of investors like Thrive Capital and Apple.

OpenAI may become a traditional startup

OpenAI, known for its unconventional structure, was initially founded to ensure the safety and benefit of humanity in the development of artificial general intelligence (AGI). The unusual governance model, where a nonprofit controlled a commercial subsidiary, was designed to ensure that AI development would serve public interests.

However, this structure came under scrutiny last November when CEO Sam Altman was removed from his position by the board of directors, citing communication failures and a loss of trust. But with the support of employees and investors, Altman was quickly reinstated.

Following these events, the OpenAI board underwent significant changes, now predominantly composed of technical experts, led by Bret Taylor, an experienced technology executive. Any major changes in the company now require the approval of this updated board.

The latest developments suggest a potential weakening of the nonprofit’s control over OpenAI’s commercial activities. This could make the company more like a traditional startup, focused on maximizing profits — a move generally welcomed by investors who have invested heavily in this promising company.