OpenAI, the leading artificial intelligence firm, has entered a non-binding memorandum with its major investor, Microsoft, to restructure its business model. Announced on Thursday, this plan allows OpenAI’s for-profit segment to transition into a public benefit corporation while ensuring that its nonprofit arm maintains control. CEO Sam Altman reiterated that the nonprofit entity will continue overseeing the for-profit side. The restructuring is expected to grant the nonprofit a stake valued at over $100 billion in the new entity. OpenAI aims to collaborate with California and Delaware Attorneys General during this process, highlighting its commitment to regulatory compliance. Originally founded in 2015 by tech visionaries like Elon Musk, OpenAI is renowned for developing ChatGPT, a major large language model. The company has also recently raised $8.3 billion, leading to a projected valuation of $300 billion and a forecasted total revenue of $12.7 billion by 2025, despite facing management challenges earlier this year.
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