30s Summary

OpenAI is in early talks about transforming into a for-profit business, a change from its current nonprofit status. Valued at approximately $157 billion, OpenAI has been contemplating this move since September. Turning for-profit might attract more investors, but could shift the company’s mission of creating safe, beneficial AI. Despite potential controversy and internal troubles, OpenAI reassures the nonprofit aspect will remain. OpenAI’s profitability is predicted to commence in 2029, despite reported revenues of $100 billion.

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OpenAI, the folks behind ChatGPT, are in early talks with officials in California and Delaware about possibly becoming a for-profit business. Right now, the company is estimated to be worth around $157 billion – that’s according to a talk they had with California’s Attorney General Rob Bonta and his Delaware buddy.

Apparently, this is something OpenAI’s been considering for a while. Back in September, Reuters first let it slip that OpenAI was planning to change from a nonprofit to a for-profit company.

One big issue they’re facing is figuring out how much OpenAI’s inventions, like their highly profitable chatbot, are actually worth. Since OpenAI is currently a non-profit, if it sells any assets, the money would typically go towards a charitable cause.

But many investors find businesses far more attractive than nonprofits, so changing the company’s structure could be a good move. The only thing is, some people worry this means OpenAI might stop trying to fulfill its original promise – to make AI products that are safe and benefit humanity.

And remember last year when Elon Musk made some digs at OpenAI for changing to a for-profit business after he’d given them $50 million? Even though he ended up dropping his lawsuit against them, it did cause a bit of a stir.

OpenAI nonprofit board chairman Bret Taylor reassured people that the nonprofit will still exist even if they do move forward with the new structure.

After setting up a for-profit subsidiary in 2019 to help fund the high cost of creating AI models, the company went through a bit of a rocky period, with Sam Altman, the CEO, being fired then rehired, and some anxiety on the board over how to balance the safety of AI with the need to make money.

But OpenAI has been making some big steps forward. In fact, one of the company’s safety researchers recently left to start a new nonprofit or join an existing one to focus on AI policy research and advocacy. However, it’s been reported that the company won’t start making a profit until 2029, even after hitting revenue of $100 billion. Regardless, it looks like it’s full steam ahead for OpenAI.