OpenAI, the company behind ChatGPT, is on the verge of a major restructuring. CEO Sam Altman has apparently told employees that the startup plans to shed its complex non-profit structure. The change is expected to take place in 2025 and could turn OpenAI into a more traditional, for-profit company.
The planned restructuring coincides with a new round of funding in which OpenAI is seeking a valuation of $150 billion. According to sources familiar with the matter, the financing will be in the form of convertible notes. The high valuation is contingent on OpenAI changing its corporate structure and removing the earnings restriction for investors.
These developments mark a significant change for OpenAI, which was founded in 2015 as a nonprofit research project. The potential restructuring could make it easier for the company to attract investors and fund its costly artificial intelligence research. However, it also raises questions about OpenAI’s future direction and governance, particularly with regard to the company’s original nonprofit mission.