The Transformation of OpenAI into a Profitable Company Sam Altmans Plan

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OpenAI Transitioning to For-Profit Company
Musk Accuses OpenAI of Abandoning Original Intent
Sam Altman Reorganizes Board of Directors
According to The Information
report, co-founder and CEO Sam Altman stated to shareholders this week that he is considering transitioning OpenAI from a limited-profit company model to an “unrestricted for-profit company” similar to its competitors (Anthropic, xAI), a move that, if realized, would result in the non-profit board of OpenAI losing control of the company.
OpenAI’s current private valuation is estimated at around $860 billion. Its current company structure is described on the company website as a “collaboration between the original non-profit organization and a new limited-profit division.”
On its website, it states that the transition from the initial “non-profit organization” to “limited-profit” was to incentivize research in the field of Artificial General Intelligence (AGI) while maintaining the company’s vision. As for why this change is necessary, according to OpenAI, the reason is that “donations” are not sufficient to cover the expenses required for the company’s work, hence the need for a new cash flow to incentivize stakeholders.
However, at present, the website still retains a warning that stakeholders should consider their investment as a donation.
According to a previous report by Zombit, Tesla CEO Musk previously accused OpenAI of abandoning its non-profit intentions. Musk at the time accused OpenAI and its founder Sam Altman of betraying the agreement made at the organization’s inception to prioritize the development of technology based on human well-being over profit, and stated that OpenAI’s recent relationship with tech giant Microsoft has compromised the organization’s initial commitment to public open-source General Artificial Intelligence (AGI). Musk wrote in the lawsuit:
On the other hand, in floating the idea of restructuring the company, Sam Altman has already reconfigured the board, including himself and many carefully selected stakeholders. These individuals include former CEO of the Bill & Melinda Gates Foundation Sue Desmond-Hellmann, former Vice President of Sony Nicole Seligman, and CEO and Chairman of Instacart Fidji Simo.
Additionally, retired U.S. Army General and former Director of the National Security Agency Paul Nakasone has also been added to the board, a move that sparked strong opposition from former CIA officer Edward Snowden. Snowden warned the public on X not to “never trust OpenAI or its products” and added that “appointing a former NSA senior official to the board has only one reason.”