OpenAI Says It Needs More Money as the ChatGPT Maker Moves Toward For-Profit Structure | Global News Avenue

Artificial Intelligence (AI) Startup OpenAI said on Friday it will need to raise more money than expected to achieve its goals and lays out plans to transition to a for-profit structure.

OpenAI was founded in non-profit organization Its stated mission is to “build safe and beneficial general artificial intelligence for the benefit of mankind.” However, the company has since moved to a hybrid “profit cap” structure, with its nonprofit arm controlling a for-profit subsidiary to raise funds to support its work.

“The hundreds of billions of dollars that companies are currently investing in AI development illustrate what OpenAI will really need to continue to pursue this mission,” OpenAI said in a blog post on Friday. He added that this means it Needs to “raise more than we ever thought possible.”

this Chat GPT The manufacturer said it plans to reorganize into a public benefit corporation (PBC) with common stock next year. The People’s Bank of China will operate and control OpenAI’s operations, while its nonprofit arm will hire a leadership team and staff “to carry out charitable activities.”

The new structure will better “equip each arm to perform its role,” it said.