OpenAI’s CFO Sarah Friar spoke about collaborations with SoftBank, the role of artificial intelligence, and the introduction of OpenAI’s “Deep Research” tool, acknowledging the impact on Deepseek’s domain.
On Monday, OpenAI revealed that it has decided not to transition from its non-profit model to a for-profit setup.
The creator of ChatGPT has established a for-profit limited liability company (LLC), which allows it to act as a public benefit corporation that balances shareholder interests with OpenAI’s mission. Its non-profit branch operates under this model, becoming significant shareholders within it.
Chairman Brett Taylor stated, “We’ve listened to civic leaders and had constructive discussions with the Delaware and California Attorney Generals’ offices prior to the decision to retain control of OpenAI.”
OpenAI redefines its corporate framework to attract AGI investments
OpenAI CEO Sam Altman will address attendees at the OpenAI Day event in San Francisco on November 6, 2023. (Photo: Justin Sullivan/Getty Images)
Altman expressed appreciation for the support of both offices, looking forward to ongoing discussions to ensure that OpenAI can effectively advance its mission for AGI to benefit humanity.
The CEO has advocated for a transition to a for-profit model to enhance the company’s ability to secure significant funding required for AGI advancements, explaining its implications to employees.
He noted, “OpenAI was established as a non-profit and will remain so while overseeing and managing its for-profit entities.”
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OpenAI CEO Sam Altman is set to speak at an event titled “Transforming Business” on February 3rd, alongside SoftBank Group CEO Masayoshi Son. (Tomohiro Osumi/Getty Images)
He added that the new commercial structure will set a precedent for for-profit entities in the AGI landscape, similar to others like X.AI and certain mission-driven companies like Patagonia.
“We’re moving away from our previously complex capital model, which made sense when there was only one AGI initiative. But now, with many AGI firms, we’re adopting a more standard structure where everyone has shares. This isn’t a sale; it’s a more straightforward transformation.”
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OpenAI’s co-founder emphasized the necessity to secure resources to make its services widely accessible to all humanity, mentioning the potential need for hundreds of billions, eventually trillions, in funding.
