OpenAI, which has made a name for itself worldwide with its artificial intelligence research, is preparing for a major structural change in 2025. According to Fortune , OpenAI CEO Sam Altman announced that the company will move away from its complex non-profit structure and transform into a more traditional for-profit organization. Altman did not provide clear information about the details of this transition, and it is not yet clear how the transformation process will take place and how the new structure will take shape. However, a company spokesperson stated that OpenAI will “continue to focus on its mission of developing artificial intelligence for the benefit of everyone” and that the non-profit identity “will remain at the core of the company.”
OpenAI was founded in 2015 as a non-profit organization. The organization’s goal was to direct AI research for the benefit of humanity and was funded by donations. However, over the years, this model has proven unsustainable. A document published by the company stated that only $130.5 million in donations were raised, emphasizing that this amount was insufficient to cover the costs of computing power and skilled human resources required for AI research. This funding problem led OpenAI to seek a solution in 2019, and a for-profit subsidiary was created.
Advantages and problems of complex structure in OpenAI
Currently, OpenAI’s structure is based on a very complex model. The non-profit parent company controls this subsidiary and receives investments from large technology companies through this structure. Investments made by giants such as Microsoft in OpenAI are also part of this model. However, in this structure, dividends are limited, and the amount of profit that can be distributed to investors is limited to a certain ceiling. When this ceiling is exceeded, the excess profit is transferred to the non-profit part of OpenAI.
This financial model was enough for OpenAI to expand its operations and achieve sustainable growth. In particular, it is stated that the company’s annual revenue doubled in the first half of 2023 due to the effect of ChatGPT’s subscription model. This revenue growth from OpenAI’s services may further accelerate future structural changes.
But another important feature of the current structure also includes control over management. In 2023, OpenAI’s non-profit board of directors removed Sam Altman from the position of CEO. This decision was explained by distrust in Altman’s leadership abilities. However, in a short period of five days, the board was dissolved and Altman was reinstated. This event showed that the company’s complex management structure also brings some challenges.
OpenAI’s decision to switch to a for-profit structure means significant changes not only in terms of its revenue model, but also in terms of its management and operational processes. With this new structure, the company aims to attract more investors and further advance its AI research. However, there are still uncertainties about what kind of management model this transition will provide and how it will align with the company’s original mission of “AI for the benefit of humanity.”
A spokesperson for the company told Fortune that OpenAI’s nonprofit identity will be preserved and that this structure is a core part of OpenAI’s mission. This suggests that OpenAI will remain committed to ethical values while also striving for commercial success. However, the challenges of commercial success and how to balance these goals are questionable.
As a result, OpenAI is expected to undergo a major transformation in the coming years, both structurally and strategically. The company, which is a pioneer in the world of artificial intelligence, may become a stronger player in the technology world with this transformation. However, this process also raises the question of how to reconcile it with the company’s ethical and social responsibility mission.