OpenAI will transition away from its non-profit structure to a traditional for-profit organization, enabling better scalability and revenue generation for its AI initiatives.
OpenAI's initial reliance on donor funding was insufficient given the high costs of computational power and talent, leading to the creation of a for-profit subsidiary.
The non-profit aspect of OpenAI will continue to exist, focusing on building AI that benefits everyone, according to a company spokesperson.
With its current structure, there is a revenue cap for investors, with excess profits directed to the non-profit division, underpinning OpenAI’s mission.
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