OpenAI Going For Profit, Giving Altman a Stake

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Sep 26, 2024

Above: Open AI Chief Executive Officer Sam Altman (C) speaks at the Advancing Sustainable Development through Safe, Secure, and Trustworthy AI Event at Grand Central Terminal on September 23, 2024 in New York. Image copyright: Bryan R. Smith/Contributor/AFP via Getty Imagesstory last updated Sep 26

The Facts

OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is reportedly planning to shift from its current nonprofit status to becoming a for-profit company, with CEO Sam Altman receiving equity in the corporation.OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is reportedly planning to shift from its current nonprofit status to becoming a for-profit company. CEO Sam Altman, who previously said he wouldn't take a financial a share, will reportedly now receive equity.
While it will no longer control OpenAI's main business operations, the nonprofit, which was founded in 2015 as an AI research organization, will still have a minority stake in the company.While the nonprofit side will maintain a minority stake in the company, the for-profit change is reportedly expected to entice new investors, including Apple, Nvidia, and United Arab Emirates MGX.

The Spin

OpenAI has already changed the world for the better, which is why its nonprofit arm will remain a crucial part of the new corporation. However, to accomplish the technological pursuits required to further benefit humanity, the company will need enough financial backing, and thus seek business partnerships with tech powerhouses like Apple.