New Delhi, June 16: OpenAI, the AI research and deployment company, is considering a significant shift in its business model. According to multiple reports, OpenAI CEO Sam Altman has indicated that the company may transition to a for-profit corporation. The potential change might come as OpenAI continues to advance in AI technology.

As per a report of The Information, OpenAI CEO Sam Altman has said that the company could become a benefit corporation. The statement highlights the strategic considerations behind the decision. The possibility of such a change could open the door for OpenAI's initial public offering in the future, which currently holds a private valuation of USD 86 billion. Apple Not Paying ‘Cash’ to OpenAI To Integrate ChatGPT on Its Operating Systems, Offering Benefits Through Distribution: Reports.

OpenAI CEO Sam Altman has shared with some shareholders that the company is considering a potential shift towards a for-profit business model and will no longer be controlled by its current nonprofit board, as per a report of Business Today. The significant change would likely result in the company being governed by a different board structure. The implications of such a transition might be significant, and it remains to be seen how the development will impact the company's operations and future direction.

One potential strategy being explored by OpenAI is adopting a for-profit benefit corporation structure, similar to those employed by its competitors like Anthropic and xAI. The structure would enable OpenAI to generate profits while maintaining its dedication to societal benefits. By doing so, OpenAI might balance its financial goals and drive positive change through AI innovation. However, the discussions are still ongoing, indicating that Sam Altman and the board may eventually choose a different path. Elon Musk’s Statement on Eliminating EVMs From Voting Holds No Truth, He Can Learn From India, Says Rajeev Chandrasekhar.

OpenAI has recently expanded its board of directors by appointing Paul Nakasone, a cybersecurity expert with extensive experience in the US military. Paul Nakasone previously served as the commander of US Cyber Command and the director of the National Security Agency (NSA). As per reports, Elon Musk criticises Apple's collaboration with OpenAI on integrating ChatGPT with iPhones and has expressed concerns that the AI company may potentially gain access to his personal phone.

(The above story first appeared on LatestLY on Jun 16, 2024 04:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).