OpenAI drops nonprofit status for $130 billion restructure

OpenAI's shift from nonprofit to for-profit public benefit corporation, driven by the need to compete with tech giants like Google and Meta in AI, has made it the richest foundation in America. This move, following the success of ChatGPT and the departure of CEO Sam Altman, allows OpenAI to raise big money, offer equity to employees, and potentially go public. Despite maintaining a foundation role, OpenAI's core is now purely business, with pressure to raise unlimited funding and strike lucrative deals. Critics argue this is a betrayal of its original mission, but OpenAI insists on its commitment to health and AI safety.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.