After Altman’s assumption of power, OpenAI may transform into a solely profit-oriented corporation.

Market Rumors

Sam Altman is considering transforming OpenAI into a general for-profit company to resolve conflicts within its hybrid organizational structure. Additionally, OpenAI announced yesterday the launch of OpenAI for Nonprofits, a counseling program aimed at reducing the cost of using ChatGPT for nonprofit organizations.

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OpenAI may transform into a general for-profit company
To reduce operational conflicts
Possibly transitioning from a hybrid structure to a purely for-profit company
Altman driving company reform after taking control
OpenAI for Nonprofits program
According to sources familiar with the matter, Altman seems to be considering transforming OpenAI into a fully compliant for-profit company to resolve the long-standing conflict between its non-profit and for-profit hybrid structure.
(Elon Musk sues OpenAI, Sam Altman, demanding a return to open-source)
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Although OpenAI is currently a for-profit company, it was initially established as a non-profit research institution. OpenAI was founded in 2015, and at that time, it did operate as a non-profit organization, dedicated to advancing the industry of AI and ensuring its benefits are shared by all of humanity.
However, in 2019, OpenAI announced the establishment of OpenAI LP, a capped-profit company that allows limited investment returns while still remaining committed to its non-profit mission. The parent company of OpenAI LP, OpenAI Inc., remains non-profit, making OpenAI a hybrid entity with both non-profit and for-profit characteristics.
This structure has become a hindrance to its growth, to a greater or lesser extent, compared to its competitors such as Google, Microsoft, and Anthropic, and has led to the current need for transformation into a regular company.
This action demonstrates Altman’s increasing power within OpenAI. Whether it’s successfully reorganizing the board of directors that opposed his management or the recent departure of Ilya Sutskever, it shows that Altman is gradually gaining a firm foothold and starting to have the ability to drive OpenAI forward with his own vision.
(OpenAI co-founder Ilya Sutskever departs, Sam Altman announces new Chief Scientist)
Additionally, OpenAI recently launched the new OpenAI for Nonprofits program, which allows non-profit organizations to use its services.
The team stated that many non-profit organizations are already using ChatGPT to increase productivity and solve problems in innovative ways. This includes using ChatGPT to write grant proposals, enhance team data analysis capabilities, or assist teams in planning communication strategies for different audiences.
Some non-profit organizations even build their services based on ChatGPT. For example, Team4Tech uses ChatGPT to conduct preliminary evaluations and categorize specific areas for educational resources.
OpenAI states that non-profit organizations can now use ChatGPT Team at a discounted price of $20 (originally $25). Alternatively, they can use ChatGPT Enterprise at a 50% discount.
For detailed application plans, please refer to the link provided.
OpenAI
OpenAI for Nonprofits
Sam Altman


Further Reading
OpenAI collaborates with Reddit to enhance ChatGPT with Reddit’s database
OpenAI co-founder Ilya Sutskever departs, Sam Altman announces new Chief Scientist