OpenAI to shift from non-profit to for-profit company: report

OpenAI, the company behind the popular ChatGPT, is reportedly in discussions with the California attorney general's office to change its corporate structure to a for-profit model, according to Bloomberg News. This potential shift would mark a significant change for OpenAI, which was originally established as a non-profit research organisation in 2015.

The move, which follows earlier reports from September, would align OpenAI's business structure with its growing appeal to investors. Microsoft, a major backer, has previously supported OpenAI's rapid development and commercialisation efforts. 

Sources indicate that OpenAI's core business could soon become a for-profit benefit corporation, while its non-profit branch would continue to operate with a minority stake in the new entity, states a follow-up report by Reuters. Neither OpenAI nor the California attorney general's office has responded to requests for comment from Reuters on the matter.

The potential restructuring comes on the heels of OpenAI's recent $6.6 billion funding round, pushing its valuation to approximately $157 billion and establishing it as one of the world's most valuable private companies.