The Sam Altman-led AI research organization, OpenAI, is in the early phase of talks with California’s Attorney General’s office to change its corporate structure from a non-profit to a for-profit organization, Bloomberg News reported Monday after discussing the matter with two individuals familiar with it.
This will mark a big shift in the corporate and governance structure of AI Pioneer, which was founded in 2015 as a non-profit AI research lab. However, this drastic reversal in corporate structuring can make the firm much more attractive to investors and attract hefty investments, which will help the firm invest more money in AI development.
Read Also- USA AI Advisory: Building An AI Proof Infrastructure
Talks of OpenAI restructuring first surfaced in early September, when the news agency Reuters reported that the AI leader plans to restructure its core business into a for-profit corporation, no longer governed by its non-profit board.
It is worth noting that the old, non-profit OpenAI will continue to exist and will also hold a minority stake in the all-new and separate for-profit OpenAI. Last month, the ChatGPT maker closed a $6.6 billion funding round, which could see the company’s value go to approximately $157 billion, cementing its place as the premier AI research firm in the world.
