May 31, 2024 – According to a recent report from The Information, sources close to the matter have revealed that Sam Altman, CEO of OpenAI, is contemplating a significant change in the company’s structure. Altman is considering reorganizing OpenAI into a fully-fledged for-profit entity, primarily to address the ongoing tension between its non-profit status and revenue-generating operations.
A source who has spoken with Altman indicated that one possibility under discussion is transitioning OpenAI into a profit-making venture, a notion that Altman himself has mulled over. Investors in OpenAI have expressed their desire for Altman to receive an equity stake, aligning his interests more closely with the company’s business objectives.
The impetus behind Altman’s thinking stems from the need to provide incentives to investors and attract substantial funding. Without a profit-oriented structure, the company finds it challenging to offer adequate investor incentives, thus hindering its ability to reach its ambitious fundraising target of $100 billion (approximately 726 billion Chinese yuan).
As major technology companies rush to capitalize on the AI trend, OpenAI recognizes the necessity to transition into a profit-making entity to facilitate substantial investments.
Meanwhile, rumors are swirling about a potential collaboration between OpenAI and Apple, which is seen as a catalyst for further enhancing OpenAI’s technological capabilities. Reports suggest that the two tech giants are exploring several avenues of cooperation, including integrating OpenAI’s advanced technologies into Apple’s AI-powered voice assistant, Siri. This integration could significantly enhance Siri’s ability to handle more complex queries. Apple is expected to announce this partnership during its annual Worldwide Developers Conference, scheduled for June 10-14.
