OpenAI needs more capital/ Company's board presents plan to become profitable
The company OpenAI announced that, in order to move towards a new for-profit structure in 2025, it will create a public benefit corporation to oversee commercial operations, removing some of its non-profit restrictions. This will allow the company to function more like a fast-growing startup. "The hundreds of billions of dollars that large companies are investing in the development of Artificial Intelligence shows what it will take for OpenAI to continue to pursue the mission," the OpenAI board announced in a post. "We once again have to raise more capital than we imagined. Investors want to support us, but, at this scale of capital, they need conventional capital", the announcement states.
The pressure on OpenAI is tied to the $157 billion valuation it achieved in just two years, since the company launched its viral chatbot, ChatGPT, and kicked off the generative artificial intelligence boom. OpenAI closed its latest $6.6 billion round in October, preparing to compete aggressively with Elon Musk's xAI, as well as Microsoft, Google, Amazon and Anthropic, in a market projected to reach $1 trillion by income within a decade.
The development of the large language models of ChatGPT and other generative AI products requires a continuous investment in high-powered processors, mainly provided by Nvidia, and cloud infrastructure, which OpenAI receives from its main funder, Microsoft . OpenAI predicts around $5 billion in losses this year.
By becoming a public benefit corporation in Delaware "with common stock," OpenAI says it can pursue commercial operations while separately hiring staff for the nonprofit arm, which can engage in charitable activities in health care, education and science.
The complex structure of OpenAI, as it exists today, is the result of its creation as a non-profit organization in 2015. The company was founded by Sam Altman, Elon Musk and several others as a research laboratory, focused on general artificial intelligence, which was a thoroughly futuristic concept of time.
Poll
Costliest climate disasters of 2024 / Killed 2,000 people and caused $229 billion in damages
The world's 10 costliest climate disasters of 2024 caused $229 billion in damage and killed 2,000 people, the latest annual analysis of insurance payouts has......
Loans for housing purchases, with an increase in November/ But the private sector is the main "driver" of the decline in lending
The new credit given by the banking sector during November of this year is fixed at 24.4 billion ALL, according to the latest data from the "Bank of......
Credit to the economy, with growth in November/ The total reached 824.4 billion ALL, or 1.5% more than in October
In recent months, the Albanian economy has experienced a significant increase in total credit, reflecting a stable development and increased confidence in......
Olive oil, milk and cereals: How did food prices fluctuate in 2024?
In 2024, agricultural prices in the European Union suffered a modest decline, falling by 2% compared to 2023. This drop in prices followed sharp increases......
US homelessness hits record highs as housing costs continue to rise!
The increase has also been fueled by devastating natural disasters and a surge in immigrants in some parts of the country, federal officials said Friday. The......
A third of Europeans have tried illegal drugs! - Which countries consume more?
Almost one in three Europeans have sampled illicit drugs in their lifetime, but not every country is the same when it comes to their drug habits or their......
NASA confirms that the solar probe has successfully made the closest approach to the Sun!
NASA's Parker Solar Probe has successfully made its closest approach to the Sun, the space agency has confirmed. Earlier this week, the spacecraft passed......
"Britain will surpass Europe in 15 years" - According to forecasts, London will benefit from the economic decline of the eurozone
The UK will outperform its European peers in the next 15 years, helping it to remain among the world's largest economies, according to long-term......
