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OpenAI CEO Has No IPO Plan Due To 'Strange' Company Structure - Slashdot
source link: https://slashdot.org/story/23/06/06/2056223/openai-ceo-has-no-ipo-plan-due-to-strange-company-structure
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OpenAI CEO Has No IPO Plan Due To 'Strange' Company Structure (reuters.com) 31
Posted by BeauHD
on Tuesday June 06, 2023 @08:02PM from the hybrid-capped-profit-companies dept.
An anonymous reader quotes a report from Reuters: Microsoft-backed OpenAI, the company behind ChatGPT, has no plans to go public any time soon, Chief Executive Sam Altman said at a conference in Abu Dhabi. "When we develop super intelligence, we are likely to make some decisions that most investors would look at very strangely," Altman said. "I don't want to be sued by ... public market, Wall Street etc, so no, not that interested," he said in response to a question on whether he will take OpenAI public.
OpenAI has so far raised $10 billion from Microsoft (MSFT.O) at a valuation of almost $30 billion as it invests more on building computing capacity. "We have a very strange structure. We have this cap to profit thing," he said. OpenAI started off as a non-profit organization but later created a hybrid "capped-profit" company, that allowed it to raise external funds with a promise that the original non-profit operation still benefits.
Altman is on a whirlwind tour across the world, meeting heads of states of several countries, and was in the United Arab Emirates on Tuesday. He plans to travel next to Qatar, India and South Korea. While in Europe he got into controversy for saying OpenAI may leave the region if it becomes too hard to comply with planned laws on AI, inviting criticism from several lawmakers, including EU industry chief Thierry Breton. OpenAI later reversed the stance. "We did not threaten to leave the EU," Altman said on Tuesday. "We expect to be able to comply. There's still more clarity we are waiting for on the EU AI Act, but we are very excited to operate in Europe."
OpenAI has so far raised $10 billion from Microsoft (MSFT.O) at a valuation of almost $30 billion as it invests more on building computing capacity. "We have a very strange structure. We have this cap to profit thing," he said. OpenAI started off as a non-profit organization but later created a hybrid "capped-profit" company, that allowed it to raise external funds with a promise that the original non-profit operation still benefits.
Altman is on a whirlwind tour across the world, meeting heads of states of several countries, and was in the United Arab Emirates on Tuesday. He plans to travel next to Qatar, India and South Korea. While in Europe he got into controversy for saying OpenAI may leave the region if it becomes too hard to comply with planned laws on AI, inviting criticism from several lawmakers, including EU industry chief Thierry Breton. OpenAI later reversed the stance. "We did not threaten to leave the EU," Altman said on Tuesday. "We expect to be able to comply. There's still more clarity we are waiting for on the EU AI Act, but we are very excited to operate in Europe."
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