After Altman’s takeover, OpenAI may transform into a solely profit-driven corporation.
Market Rumors
Sam Altman is considering transforming OpenAI into a general profit-making company to resolve conflicts within its hybrid organizational structure. Additionally, OpenAI announced yesterday the launch of OpenAI for Nonprofits, an assistance program for nonprofit organizations to reduce the cost of using ChatGPT.
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OpenAI may transform into a general profit-making company
To reduce conflicts in management
Possibly transitioning from a hybrid structure to a purely profit-making company
Altman driving company reforms after taking control
OpenAI for Nonprofits program
According to insiders from The Information, Altman seems to be considering transforming OpenAI into a compliant profit-making company to resolve the long-standing conflict between its nonprofit hybrid structure.
(Elon Musk sues OpenAI, Sam Altman, demanding a return to open-source)
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Although OpenAI is currently a profit-oriented company, it originally started as a nonprofit research institution. OpenAI was founded in 2015 and initially existed as a nonprofit organization, dedicated to advancing the industry of AI and ensuring its benefits are shared by all humankind.
However, in 2019, OpenAI announced the establishment of OpenAI LP, a capped-profit company that, while still dedicated to its nonprofit mission, allows for limited investment return. OpenAI LP’s parent company, OpenAI Inc., remains nonprofit, making OpenAI a hybrid structure with both nonprofit and profit-making characteristics.
This structure has become a hindrance to its growth compared to its competitors such as Google, Microsoft, and Anthropic, which is why there is now a need for it to transition into a general company.
Altman’s increasing power within OpenAI can be seen from his successful restructuring of the board of directors against opposition to his management, as well as Ilya Sutskever’s recent departure, which shows Altman gradually gaining a firm footing and the ability to drive OpenAI forward with his own vision.
(Co-founder of OpenAI, Ilya Sutskever, departs; Sam Altman announces new Chief Scientist)
Furthermore, OpenAI recently launched the new program OpenAI for Nonprofits, which allows nonprofit organizations to use their services.
The team stated that many nonprofit organizations are already using ChatGPT to increase productivity and find innovative solutions to problems. This includes using ChatGPT to write grant proposals, enhance team data analysis capabilities, or assist teams in planning communication strategies for different audiences.
Some nonprofit organizations have even built their services based on ChatGPT, such as the educational resources curated by Team4Tech, which use ChatGPT to conduct initial evaluations and categorize specific domains.
OpenAI states that nonprofit organizations can now use ChatGPT Team at a discounted price of $20 (original price $25), or use ChatGPT Enterprise at a 50% discount.
For detailed application plans, please see here:
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OpenAI
OpenAI for Nonprofits
Sam Altman
Further Reading
OpenAI collaborates with Reddit to enhance ChatGPT with Reddit’s database
Co-founder of OpenAI, Ilya Sutskever, departs; Sam Altman announces new Chief Scientist