The OpenAI startup has an organizational structure that is quite unusual for companies seeking to attract investor funds. The business is run by a non-profit organization with its own board of directors, while the commercial division attracts funds from shareholders but does not guarantee them a profit. Given the current scale of the business, such a discrepancy tends to scare off potential investors.
Potential Organizational Changes
According to the Financial Times, OpenAI’s management is currently discussing the possibility of transforming its organizational structure to increase its attractiveness to investors. Since 2019, Microsoft has invested about $13 billion in OpenAI, which allows it to claim 49% of the startup’s profits. However, the key investor still cannot influence the decisions made by the board of directors. The high costs of business development prevent investors from counting on regular profits, and all funds received are legally registered by OpenAI as voluntary contributions to capital, notes NIX Solutions.
Discussed Ideas and Future Prospects
One of the ideas being discussed involves removing restrictions on the amount of profit received by OpenAI investors. Although the company’s representatives declined to comment on these rumors, they clarified that “the non-commercial nature is the basis of our mission, and it will be preserved.” Participants in the negotiations, speaking on condition of anonymity, emphasize that a transition to a more traditional investment scheme could attract more financial resources to the company. We’ll keep you updated as more information becomes available.