OpenAI is reportedly aiming for an IPO by late 2026, potentially doubling its valuation to $1 trillion. This move comes as the AI giant deals with rising operational costs, including expensive GPUs and talent, alongside projected revenues of $20 billion by year-end. CEO Sam Altman emphasized the IPO’s necessity for funding the company’s extensive AI infrastructure. Recently, OpenAI restructured into a public benefit corporation, allocating a 26% stake to its nonprofit arm, now the OpenAI Foundation, which intends to invest $25 billion in philanthropic projects. Major investor Microsoft holds a 27% stake in the new entity. Meanwhile, legal AI startup Harvey raised $150 million, and several other companies, including Genspark, Fireworks AI, and ConductorOne, are securing significant funding, highlighting the vibrant AI landscape. In parallel, Elon Musk introduced Grokipedia, a controversial AI-generated encyclopedia, in competition with Wikipedia, drawing criticism regarding source reliance.
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