news

the $6.5 billion round, details of which have never been disclosed, represents a new phase in the evolution of openai, the world’s most valuable artificial intelligence startup, from a research-based nonprofit organization to a new stage in its development, and reflects its willingness to make structural changes to attract more investment to support its vision of artificial general intelligence (agi).

according to people familiar with the matter, given the rapid growth of openai's revenue, the large-scale financing demand is strong and is expected to be completed in the next two weeks. existing investors such as thrive capital, khosla ventures and microsoft are expected to continue to participate, while new faces such as nvidia and apple also plan to join the investment ranks, and sequoia capital is exploring returning to openai financing as a returning investor.

however, the source also pointed out that if the company's restructuring does not proceed as expected, openai may face the situation of renegotiating valuations with investors. this may result in investors' stock conversion terms being adjusted to a lower price, and the specific details may be discussed privately and confidentially.

lifting the profit cap would require approval from openai’s nonprofit board, which includes chief executive officer sam altman, entrepreneur bret taylor and seven other members.

sources confirmed that openai is discussing with legal advisers the possibility of transforming into a for-profit corporation, following the model of competitors anthropic and xai.

it’s unclear whether such a fundamental change in corporate structure will happen. the existence of a profit cap limits the potential returns for investors in openai’s for-profit subsidiaries, and removing that limit would give earlier investors greater gains.

however, this move may also trigger public doubts about openai's governance and whether it has deviated from its non-profit original intention. openai previously emphasized that setting a profit cap is intended to "encourage the team to balance commercialization with safety and sustainability when pursuing agi (general artificial intelligence) research, development and deployment, rather than simply pursuing profit maximization."

under the current structure, investors’ returns are capped, and any excess will go to nonprofits. openai’s first round of funding was capped at 100 times the investment. according to the company’s 2019 official blog, the multiple is expected to be lower in subsequent rounds.

openai has successfully raised more than $10 billion in funding through this model, mainly from microsoft, and its latest valuation reached $80 billion in a share tender offer in february.

altman: openai's non-profit structure will change as early as next year

openai has not yet commented on the relevant information. however, its ceo sam altman recently revealed to employees at a company-wide meeting that openai's non-profit structure is expected to be adjusted as early as next year.

altman acknowledged that the current structure, in which the nonprofit oversees the for-profit arm, which in turn controls a holding company that manages another for-profit entity, has become too complex, according to two people familiar with the matter. the ultimate for-profit entity in this structure is the one that has attracted billions of dollars in investment from outside investors such as microsoft.

altman called the architecture "extremely unusual" and noted that this was intentional, emphasizing last year that it was due to the "extraordinary nature of artificial intelligence technology."

although altman has not detailed to employees what the new structure will look like, he expects openai to break away from the constraints of a nonprofit organization and transform into a more traditional for-profit company, a process that is expected to be completed within the next year, the people said.

however, an openai spokesperson stressed: "we remain committed to developing artificial intelligence technology that benefits all humanity, and we are working with the board to ensure that we are in the best position to successfully achieve our mission. nonprofit organizations have always been at the core of our mission and will remain so."

rumors of a restructuring of the company into a more traditional for-profit entity have been circulating for months, a move that was said to be aimed at responding to investor expectations and bringing openai’s structure more in line with the larger mainstream tech companies. altman’s previous comments to employees, while not publicly reported, suggest the company is moving forward with the restructuring.

as openai is raising new funds and is valued at more than $150 billion, the company's nonprofit structure seems increasingly out of place. for investors, this change means a more certain potential return on their investment. in addition, openai employees are mostly focused on commercial product development, and the nonprofit label is bound to cause confusion.

in addition, openai insiders predict that the investor attention and domestic and international business regulatory scrutiny that have been triggered since altman's brief departure and return last year have indicated that openai's structural changes are inevitable. (compiled by jinlu)