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Why Would OpenAI Want to Shift to a True For-Profit Anyway?

16 0
06.07.2024

OpenAI, the San Francisco-based A.I. powerhouse now valued at $80 billion, operates by a unique structure where it is a nonprofit entity that runs a capped-profit subsidiary in which investors can buy equity. However, CEO Sam Altman may be looking to transition the organization into a fully for-profit one, The Information reported last month. The move would be unusual, however, as OpenAI has already simultaneously reaped the benefits of positive publicity from being a nonprofit while receiving significant investments that typically go into a for-profit company.

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OpenAI was founded as a nonprofit research lab in 2015 by Altman, Elon Musk, and Ilya Sutskever, among others. Born out of concern that financial incentives........

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