After Altman takes over, OpenAI may transform into a purely for-profit company.

The market rumors that Sam Altman is considering transforming OpenAI into a traditional for-profit company to address conflicts arising from its hybrid organizational structure. Additionally, OpenAI announced yesterday the launch of the OpenAI for Nonprofits program, aimed at reducing the cost for nonprofits to use ChatGPT.

OpenAI May Transform into a For-Profit Company

To Reduce Operational Conflicts

According to sources familiar with the matter, Altman seems to be considering transforming OpenAI into a standard for-profit company to resolve the long-standing conflicts between its non-profit and for-profit hybrid structure.

Elon Musk Sues OpenAI, Sam Altman for Prioritizing Profits

Possibly Transitioning from a Hybrid Structure to a Pure For-Profit Company

Although OpenAI is currently a for-profit company, it was initially founded as a non-profit research organization. Established in 2015, OpenAI started as a non-profit entity dedicated to advancing AI industry development and ensuring its benefits are shared by all of humanity.

However, in 2019, OpenAI announced the formation of OpenAI LP, a capped-profit company that allows limited returns on investment while still pursuing its non-profit mission. The parent company of OpenAI LP, OpenAI Inc., remains non-profit, making OpenAI a hybrid structure with both non-profit and for-profit characteristics.

This structure, different from its competitors like Google, Microsoft, and Anthropic, has somewhat hindered its growth and led to the current need for transformation into a standard company.

Altman Driving Company Reform After Taking Control

Altman's increasing influence within OpenAI is evident in his successful restructuring of the board against operational opposition and the recent departure of Ilya Sutskever, indicating Altman's growing foothold and ability to drive OpenAI forward with his own vision.

OpenAI Co-Founder Ilya Sutskever Steps Down, Sam Altman Announces New Chief Scientist

OpenAI for Nonprofits Initiative

Additionally, OpenAI recently launched the new initiative "OpenAI for Nonprofits," allowing non-profit organizations to use its services.

The team mentioned that many non-profits are already using ChatGPT to enhance productivity and innovate solutions, such as drafting grant proposals, strengthening team data analytics capabilities, and assisting with communication strategies for different audiences.

Some non-profit services are even built on ChatGPT, like the educational resources curated by Team4Tech, which uses ChatGPT for initial resource evaluation and specific categorization.

OpenAI offers non-profits the ability to use ChatGPT Team at a discounted price of $20 (originally $25) or a 50% discount for ChatGPT Enterprise.

For detailed application guidelines, please visit this link.