OpenAI is poised to embark on a significant restructuring as it seeks to secure $6.5 billion in its latest funding round, according to sources familiar with the negotiations. The company’s valuation, pegged at $150 billion, hinges on its ability to overhaul its corporate structure, including the potential removal of a profit cap for investors.
The funding, which has not been publicly detailed until now, underscores OpenAI’s transformation from a research-oriented non-profit to a high-stakes player in the artificial intelligence field. This move reflects the company’s shift towards a more aggressive strategy in pursuing artificial general intelligence (AGI)—AI that surpasses human cognitive abilities.
Investor interest in this funding round has been robust, and the deal could be finalized within the next two weeks, driven by OpenAI’s rapid revenue growth. Current investors like Thrive Capital, Khosla Ventures, and Microsoft are expected to participate, while new backers including Nvidia, Apple, and potentially Sequoia Capital are also in the mix.
Should OpenAI’s restructuring efforts falter, the company may need to renegotiate its valuation with investors, potentially leading to a lower share conversion rate. The company has declined to comment on these developments.
The potential removal of the profit cap, which currently limits returns for investors in OpenAI’s for-profit subsidiary, requires approval from the non-profit board, including CEO Sam Altman, entrepreneur Bret Taylor, and seven other members. Discussions have also included legal consultations about transitioning OpenAI’s structure to a for-profit benefit corporation, similar to models adopted by competitors such as Anthropic and xAI.
This shift could raise concerns about OpenAI’s governance and its departure from its original non-profit mission. The profit cap was initially implemented to encourage a balance between commercial objectives and ethical considerations in AGI development.
Founded in 2015 as a non-profit with a mission to develop AI for the benefit of humanity, OpenAI has since expanded its commercialization efforts with subscription services like ChatGPT, now boasting over 200 million users. Earlier investments, capped at a 100x return, were redirected to the non-profit arm after surpassing the limit. The company last achieved a valuation of $80 billion in February during a secondary share sale led by Thrive Capital.
