OpenAI outlines new for-profit structure to stay ahead in costly AI race
The HinduOpenAI on Friday outlined plans to revamp its structure, saying it would create a public benefit corporation that would make it easier to raise capital and remove the restrictions imposed on the startup by its current nonprofit parent. "The key to the announcement is that the for-profit side of OpenAI 'will run and control OpenAI's operations and business,'" DA Davidson & Co analyst Gil Luria said. "This is the critical step the company needs to make in order to continue fund raising," Luria said, although he added that the move did "not necessitate OpenAI going public." Meta Platforms is also urging California's attorney general to block OpenAI's planned conversion to a for-profit company, the Wall Street Journal reported earlier this month.