OpenAI board restructures board, considers full for-profit model

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OpenAI, the leading artificial intelligence company, is moving its capped-profit structure to a full for-profit model.

This shift was said to have been discussed by CEO and co-founder Sam Altman with shareholders in mid-June.

Indeed, with move, OpenAI’s non-profit board could lose its control over the company.

OpenAI operates as a partnership between its original non-profit entity and a capped-profit arm.

This structure was said to have been designed to balance profit motives with the company’s mission to advance artificial general intelligence (AGI) research.

OpenAI, which is valued at around $86 billion, adopted the capped-profit model to attract funding and maintain its commitment to its vision.

OpenAI said it believed traditional donations would not be enough to support its ambitious goals.

Consequently, it needs a structure that could bring in more substantial investments.

However, OpenAI warned that investments should be seen as high-risk, akin to donations, given the uncertainties in a post-AGI world.

According to the company, it is exploring the potential structural shift, with Sam Altman reshaping the company’s board.

Notable figures, including Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former Sony VP; Fidji Simo, CEO of Instacart; and retired U.S. Army General and former NSA Director Paul Nakasone are being enlisted in the board.

Nakasone’s appointment has sparked criticism from former intelligence contractor Edward Snowden.