OpenAI, the operator of ChatGPT, is currently in preliminary talks with the California Attorney General's Office to potentially restructure into a for-profit entity. Originally established in 2015 as a nonprofit artificial intelligence research lab, OpenAI's mission was to create safe and beneficial AI for humanity. This shift towards a for-profit model represents a significant change in the company's management structure and aims to enhance its appeal to investors.
Sources indicate that during these negotiations, California regulators may closely examine how OpenAI evaluates its profitable intellectual properties, such as the ChatGPT application. As early as September, reports suggested that OpenAI was planning to reorganize its core operations into a for-profit entity, moving away from non-profit board governance. According to insiders, the nonprofit organization will still exist and retain a minority stake in the new for-profit company.
OpenAI responded to these developments by stating that any restructuring will ensure the nonprofit's continued existence and growth, securing full value for its stake in the for-profit arm while bolstering its mission.
Recently, OpenAI concluded a $6.6 billion funding round, potentially elevating its valuation to $157 billion, which reinforces its position as one of the highest-valued private companies globally.
