In the fall, the company completed a major fundraising of $6.6 billion. dollars, with its value then estimated at 157 billion. dollars
OpenAI, the parent company of ChatGPT, took new steps today to become a for-profit company to raise more capital to develop its own AI tools.
“Once again we have to raise more capital than we had imagined. Investors want to back us, but (…) they need equity,” OpenAI said today on its website, detailing its plans. Therefore, OpenAI has indicated that it will change its existing corporate structure—the one that sells, for example, subscriptions to the more advanced version of ChatGPT—into a for-profit company with shares, while maintaining a non-profit entity.
Alongside business operations, “the non-profit organization will hire a management team and staff to pursue philanthropic initiatives in sectors such as healthcare, education and science,” the company said. Founded in 2015 as a non-profit organization, OpenAI has started the wave of genetic Artificial Intelligence (AI) with the move to make ChatGPT public in late 2022.
This fall, the company completed a major fundraising of $6.6 billion. dollars, with its value then estimated at 157 billion. dollars. At the same time, he confirmed that he wants to turn into a for-profit company. The start-up, unknown to the public two years ago, is far from profitable. OpenAI is expected to post losses of $5 billion this year, despite revenue of about $3.7 billion, according to the New York Times.
Genetic AI models trained on massive amounts of data to produce high-quality text, images and other content require power and state-of-the-art microchip electronics like Nvidia’s, which are very expensive. OpenAI and Sam Altman, the start-up’s co-founder and iconic boss, are also expected to face legal proceedings brought against the company by Elon Musk, who among other businesses wants to enter the field of Artificial Intelligence. starting in 2023 app startup.
Musk will be a future member of US President Donald Trump’s administration. In early December, he again asked the US courts to prevent OpenAI from becoming a purely for-profit company.
