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OpenAI May Restructure To Traditional Profit Model Amid Investor Concerns

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According to Odaily, OpenAI is increasingly likely to change its complex corporate structure. Earlier this week, reports indicated that the company is in talks to raise $6.5 billion at a pre-money valuation of $150 billion. Reuters has now reported that this deal hinges on OpenAI's ability to restructure and remove the profit cap for investors. Additionally, Fortune reported that co-founder and CEO Sam Altman informed employees during a company-wide meeting that OpenAI's structure is likely to change next year, making it more akin to a traditional for-profit enterprise. Currently, OpenAI's for-profit arm is controlled by a nonprofit organization, a setup that appears to be disappointing investors. In a statement, OpenAI said, 'We remain focused on building AI that benefits everyone. As we have previously stated, we are working with the board to ensure we can achieve our mission in the best possible way. The nonprofit organization is central to our mission and will continue to exist.'

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