The restructure would have allowed OpenAI remove the cap on investor returns, potentially making the company more attractive to venture capitalists. The nonprofit arm would still exist, but as a minor stakeholder, rather than maintaining governance. This plan was developed as the company sought funding that valued it at $150 billion. Later, the company expanded the plan to $40 billion at a valuation of $300 billion.
The new course of action follows months of increasing pressure from outside the organization. In April, a group consisting of legal scholars and AI researchers as well as tech industry watchdogs met to discuss the future of the company. OpenAI’s plans for restructure were openly opposed by the attorneys general in California and Delaware. Former OpenAI employees, Nobel Laureates, and law Professors also sent letters to state officials requesting they stop the restructuring efforts due to safety concerns over which part of the company will be in charge of hypothetical superintelligent AI products. He added. “That will not change.”
Uncertainty in the future
OpenAI plans to make significant corporate changes despite abandoning its restructuring plan that would have ended nonprofit controls. “The for-profit LLC under the nonprofit will transition to a Public Benefit Corporation (PBC) with the same mission,” Altman explained. But the plan could cause OpenAI to be uncertain about its financial future. OpenAI’s massive $40 billion funding round came with strings attached. Japanese conglomerate SoftBank committed $30 billion but stipulated it would reduce this contribution to $20 billion if OpenAI did not restructure to become a fully-profitable entity by the end 2025. Altman is confident in the future despite the challenges that lie ahead:
