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OpenAI Plans to Restructure as Traditional For-Profit Company in 2025

OpenAI Plans to Restructure as Traditional For-Profit Company in 2025

In a recent update, Fortune reported that Sam Altman, CEO of OpenAI, informed employees during a weekly meeting on September 13 that the company plans to undergo significant changes to its nonprofit structure in the coming year.

OpenAI intends to maintain a nonprofit division while transitioning into a more conventional for-profit organization. Altman indicated that this shift would allow OpenAI to operate independently of the constraints typically associated with nonprofit entities. However, detailed information regarding this transition was not provided during the meeting.

A spokesperson for OpenAI emphasized that the company remains committed to its mission of developing AI technologies that benefit everyone, asserting that the nonprofit mission is “core” to the organization and will continue to exist.

Founded in 2015 as a nonprofit, OpenAI has largely relied on donor funding. The organization has raised a total of $130.5 million in donations over the years but noted that this amount does not adequately cover the computing power and talent costs necessary for advancing its core research. As a result, the company signals a need to adapt its financial structure to meet its ambitious goals.

  • Rebecca Fraser

    Rebecca covers all aspects of Mac and PC technology, including PC gaming and peripherals, at Digital Phablet. Over the previous ten years, she built multiple desktop PCs for gaming and content production, despite her educational background in prosthetics and model-making. Playing video and tabletop games, occasionally broadcasting to everyone's dismay, she enjoys dabbling in digital art and 3D printing.

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