According to sources cited by the media, artificial intelligence (AI) research company OpenAI is considering changing its corporate structure to make it more investor friendly, and the company is pushing for billions of dollars in funding.
Previously, there were media reports that OpenAI was in talks for a new round of financing, planning to raise billions of dollars at a valuation of over $100 billion. Venture capital firm Thrive Capital will invest in this round of financing, bringing the total investment to $1 billion. In addition, Apple, Nvidia, and OpenAI's largest shareholder Microsoft are all interested in participating in this round of financing.
Insiders revealed that OpenAI has discussed restructuring with investors and has not yet reached an agreement on the final form. If OpenAI's current complex non-profit structure can be simplified, it will make the company more attractive to financial investors.
If OpenAI successfully completes its new round of funding plan, it will make it one of the most valuable tech startups in Silicon Valley history, surpassing the $95 billion valuation reached by payment company Stripe in its 2021 private placement.
OpenAI was initially a non-profit organization, but in 2019 it transformed into a for-profit startup. OpenAI currently defines itself as a capped profit enterprise.
OpenAI may remove the profit cap for investors
In fact, Sam Altman, CEO of OpenAI, has also publicly "complained" about the complex structure of the company.
Last June, when asked about whether OpenAI would go public, Altman replied, "I don't want to be sued by the public market and Wall Street, so (the answer is) no, I'm not that interested." He then explained, "We have a very strange structure, we have a profit cap
It is reported that OpenAI has not yet made a final decision on whether to change its own structure, and one option is to remove the profit cap on existing investors of its for-profit subsidiaries.
OpenAI currently offers shares to investors through its for-profit subsidiary, which is managed by its non-profit board of directors. OpenAI stated that the main beneficiaries of the board of directors are the entire human race, not OpenAI's investors.
At present, investors need to sign an operating agreement when investing in OpenAI, which stipulates that any investment in OpenAI's for-profit subsidiaries should be made in the spirit of donations, and OpenAI may never make a profit.
The above regulations have not become obstacles so far, and OpenAI has already received $13 billion in investment from Microsoft alone.
However, according to an OpenAI investor, they hope OpenAI can transform into a more traditional and simpler for-profit structure, preferably by removing profit caps.