"OpenAI said last week it will hand its nonprofit over $100 billion in stock, or 20% of the company's latest $500 billion valuation. It's part of the artificial intelligence giant's plan to restructure itself - it is technically a nonprofit, not a startup - so it can raise billions more from investors. Dozens of civil society groups, which want to ensure the benefits of AI are spread in the public interest, say they're pressuring regulators to protect OpenAI's nonprofit mission."
"As OpenAI inches toward its new structure, it's also racing against the clock. Its complex structure has already prevented it from reaching many potential investors, and the funding it secured is conditioned on near-term structural changes, it said in a letter this May. OpenAI stood behind its nonprofit's independence in comments to Business Insider. It also said that its existing nonprofit will remain in control of its for-profit entity as part of any changes."
OpenAI plans to give its nonprofit $100 billion in stock, equal to 20% of a $500 billion valuation, as part of a restructuring to access more investor capital. Dozens of civil society groups argue the nonprofit lacks full independence and say $100 billion may undershoot prior commitments. Those groups are pressuring California and Delaware regulators to investigate the restructuring. OpenAI maintains that the nonprofit is independent and will continue to control the for-profit entity. The company's complex structure has limited investor interest, and some funding is contingent on near-term structural changes.
Read at Business Insider
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