OpenAI is doing a 180! Forget about going for-profit – Sam Altman says they’re staying true to their nonprofit mission. This is a major shift from earlier this year when they claimed a for-profit structure was “necessary” to rake in the massive capital needed for AI development.
Originally a nonprofit since 2015, OpenAI created a for-profit arm in 2019, but that’s it. The company even considered becoming a Public Benefit Corporation, but those plans are now scrapped. Altman assures everyone that this won’t hurt their ability to raise the astronomical funds needed for AI – we’re talking hundreds of billions, possibly trillions!
This all comes amidst Elon Musk’s lawsuit, accusing Altman of secretly plotting to turn OpenAI into a for-profit venture from the start. Musk even claims that OpenAI’s success hurts his own AI chatbot, Grok. Despite the drama, OpenAI projects massive revenue growth, expecting $29.4 billion by 2026. They also snagged a cool $40 billion from Softbank, valuing them at $300 billion!