OpenAI plans to abandon the non-profit structure of the organization in 2025. This was announced during a company-wide meeting by CEO Sam Altman.
According to Fortune, Altman acknowledged that the company has outgrown its current structure, which is quite confusing. Currently, OpenAI’s nonprofit division runs a for-profit division, which in turn runs a holding company that has another for-profit division that receives billions in investments from tech giants like Microsoft.
Altman said that in 2025, the non-profit arm of the organization will cease to run the company. He did not provide any timeframe or comment on what the company’s structure will look like in the future.
“We continue to focus on building AI that benefits everyone, and we are working with our board to ensure that we are best positioned to succeed in our mission. Being a non-profit organization is at the core of our mission and will continue to be so,” the company said.
As a result of these changes, OpenAI will turn into a more traditional, profitable company. Reports of a possible restructuring of the company have been circulating for several months. One of the main goals of such changes is to reassure investors, who can be more confident that they will receive a return on their investment.
As a reminder, in July 2024, it was reported that OpenAI could exhaust its cash reserves within a year.
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