OpenAI Ends Profit Cap in Restructure
OpenAI has removed limits on investor profits by converting its for-profit arm into a public benefit company while retaining control under its nonprofit framework. This change aims to ensure that the company can make its services broadly available while being accountable to an independent board that limits CEO Sam Altman's authority. Microsoft, OpenAI's largest investor, is still reviewing and negotiating the terms of the restructuring, which may impact the future flow of capital and decision-making at OpenAI. CEO Sam Altman indicated that realizing artificial general intelligence (AGI) may require substantial investment, potentially trillions of dollars. As part of this transition, OpenAI must also address concerns from a coalition of alumni regarding the redirection of its assets. The firm, valued around $300 billion, has faced scrutiny from co-founder Elon Musk, who opposes the shift toward conventional profit-driven operations. Altman reiterated the organization's commitment to be a leading nonprofit focused on leveraging AI for societal benefits.
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