During a weekly meeting, OpenAI CEO Sam Altman announced plans to transition the company’s convoluted non-profit corporate structure into a more traditional for-profit entity next year, as reported by Fortune. The specifics of this transition remain unclear, with a spokesperson emphasizing that the organization’s focus on creating AI for the benefit of all will continue. Originally founded in 2015 as a non-profit reliant on donations, OpenAI struggled to fund its research adequately, leading to the creation of a for-profit subsidiary. This subsidiary, controlled by the non-profit arm, captures investments from companies like Microsoft, with profits capped for investors and excess revenue directed back to the non-profit division. Recent reports indicate that OpenAI’s revenue has doubled in the first half of the year, driven by the success of ChatGPT. The company’s complex structure also saw Altman ousted by the non-profit board in 2023, only to be reinstated days later after a reshuffle.
