OpenAI Plans To Restructure Itself Into A Public Benefit Corporation 2025
OpenAI, which is the organization behind AI giants like Chatgpt plans to Restrature itself into a public benefit organization soon. This change is based on the 5 billion dollar loss to the company this year to meet the research and other expenses.
Presently OpenAI is running under two entities
OpenAI For Profit
This model of OpenAI gains profit, but it is used to improve public benefits by investing it in research and computing software. Even though this year OpenAI generated 6 billion dollars in revenue, however, this year, it’s going to lose 5 billion as well. So, according to sources, if the company has to improve it needs to adopt the for-profit model. Otherwise, its research and innovative technology would suffer multiple setbacks.
Non-Profit OpenAI
This is the previous and game-changer version of OpenAI, which made it famous all over the world soon after it was established. This model provides free AI services to tech-savvy firms and individuals. However, the issue with the model started to intensify when it became hard to meet the expenses. This was the Major reason that OpenAI Restructured itself into a for-profit organization.
Refined Model Of OpenAI as a Public Benefits Organization
This model is gaining popularity because of the following factors.
It justifies the reservation proposed by Co-founder Elon Musk. Who has filed a lawsuit against OpenAI regarding its transition from an on-profit to A Profit organization? This model involves generating profit for the public benefit, which is why it is called a public benefits corporation model.
Secondly, this model would ensure innovation in AI research. The profit generated by this will be used in the research work and to arrange other computing software. Hence it could revolutionise the OpenAI to further serve the people for their benefit.
