OpenAI, one of the pioneers of the artificial intelligence world, is preparing to attract more investment by changing its corporate structure. The company announced that it plans to transition to a for-profit ‘public benefit company’ model by 2025. According to the company’s statement, this decision was taken to meet the increasing capital needs of ChatGPT and other projects.

OpenAI will now think about making a profit!

OpenAI’s new model envisages creating a public benefit corporation to replace the current non-profit parent organisation. This new structure will manage the company’s operations and commercial activities. On the other hand, the existing non-profit organisation will create a team that will focus on charitable projects in areas such as health, education and science.

In the blog post, the company stated that this transformation will create ‘a stronger nonprofit structure supported by the success of the for-profit structure’. With this move, it is stated that OpenAI will become more flexible in raising investment capital like other major players in the industry.

This transformation process of OpenAI has also brought a new process for Microsoft, one of the company’s major investors. Microsoft, which currently owns 49 per cent of OpenAI, is receiving consultancy services to determine how much of its shares will be protected in the new structure. Both OpenAI and Microsoft are working with investment banks to manage this transition.

This decision taken by OpenAI is considered as a result of increasing competition with other competitors in the industry. The company made it clear that it needs more capital to strengthen its position against competitors such as xAI and Anthropic, owned by Elon Musk.

In the blog post, he said, ‘We are now in an era where large companies are spending hundreds of billions of dollars to develop artificial intelligence. To continue our mission, we need to find much more capital than we ever imagined,’ the blog post said.

Do you think this transition can consolidate OpenAI’s leadership in the industry? Share your views with us in the comments!