Market Rumors
Sam Altman is considering transforming OpenAI into a regular for-profit company to resolve conflicts within its hybrid organizational structure. Additionally, OpenAI announced yesterday the launch of OpenAI for Nonprofits, a coaching program aimed at reducing costs for nonprofit organizations using ChatGPT.
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OpenAI may transform into a regular for-profit company
To reduce operational management conflicts
Possibly transitioning from a hybrid structure to a purely for-profit company
Altman driving company reforms after assuming power
OpenAI for Nonprofits program
According to insiders from The Information, Altman seems to be considering transforming OpenAI into a regular compliant for-profit company to resolve long-standing conflicts between its non-profit hybrid organizational concept.
(Elon Musk sues OpenAI and Sam Altman, demanding a return to open-source)
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Although OpenAI is currently a for-profit company, it was initially established as a non-profit research institution. OpenAI was founded in 2015 and indeed existed as a non-profit organization, dedicated to advancing AI industry development and ensuring its benefits are shared by all of humanity.
However, in 2019, OpenAI announced the establishment of OpenAI LP, a capped-profit company that, while still committed to its non-profit mission, allows for limited investment return. OpenAI LP’s parent company, OpenAI Inc., remains non-profit, making OpenAI a hybrid structure with both non-profit and for-profit characteristics.
This structure sets OpenAI apart from its competitors, such as Google, Microsoft, and Anthropic, and has somewhat hindered its growth, leading to the current need for transformation into a regular company.
Altman’s increasing power within OpenAI can be seen through his successful restructuring of the board of directors, which opposed his management, as well as Ilya Sutskever’s recent departure, demonstrating Altman’s gradually solidifying position and ability to advance OpenAI with his own ideas.
(Co-founder Ilya Sutskever leaves OpenAI, Sam Altman announces new Chief Scientist)
Additionally, OpenAI recently launched the new program, OpenAI for Nonprofits, which allows nonprofit organizations to use its services.
The team stated that many nonprofit organizations are already using ChatGPT to increase productivity and solve problems in innovative ways. This includes using ChatGPT to write grant proposals, enhance team data analysis capabilities, or assist teams in planning communication strategies for different audiences.
In fact, some nonprofit organizations have built their services based on ChatGPT. For example, Team4Tech uses ChatGPT to conduct initial assessments and categorize specific areas for their educational resources.
OpenAI offers a discounted price of $20 for nonprofit organizations to use ChatGPT Team (original price $25), or a 50% discount for ChatGPT Enterprise.
For detailed application plans, please refer to this link:
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OpenAI
OpenAI for Nonprofits
Sam Altman
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