Daystar news blog & magazine
  • Trending
  • World
  • Business
  • Politics
  • Sports
  • Science
  • Tech
    • All
    • Apps
    • Gadget
    • Mobile
    • Startup

    Russian delegation arrives in Turkiye for Ukraine war talks

    Ben Sulayem drives major improvements to FIA’s international Sporting Code

    Thousands worldwide benefit from KSrelief medical programs

    Trent Alexander-Arnold to leave Liverpool

    Saudi minister in China to explore education, research cooperation

    Bangladesh’s largest private airline starts Riyadh flights as demand grows

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Ferrari Roma Spider road test: Drop-top model offers speed, style and sportiness

    Ferrari Roma Spider road test: Drop-top model offers speed, style and sportiness

    Soufiane Rahimi: Al Ain’s lodestar primed to shine in Asian Champions League final

    Soufiane Rahimi: Al Ain’s lodestar primed to shine in Asian Champions League final

    Dubai Esports and Games Festival expected to reach next level as biggest and best yet

    Dubai Esports and Games Festival expected to reach next level as biggest and best yet

    Can C’s afford to keep Hauser long-term? Salary cap guru weighs in

    Can C’s afford to keep Hauser long-term? Salary cap guru weighs in

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    macOS Sierra review: Mac users get a modest update this year

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Travel

    Shooting More than 40 Years of New York’s Halloween Parade

    Heroes of the Storm Global Championship 2017 starts tomorrow, here’s what you need to know

    Why Millennials Need to Save Twice as Much as Boomers Did

    Doctors take inspiration from online dating to build organ transplant AI

    How couples can solve lighting disagreements for good

    Ducati launch: Lorenzo and Dovizioso’s Desmosedici

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Review

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    Shadow Tactics: Blades of the Shogun Review

    macOS Sierra review: Mac users get a modest update this year

    Hands on: Samsung Galaxy A5 2017 review

    The Last Guardian Playstation 4 Game review

    Intel Core i7-7700K ‘Kaby Lake’ review

No Result
View All Result
  • Trending
  • World
  • Business
  • Politics
  • Sports
  • Science
  • Tech
    • All
    • Apps
    • Gadget
    • Mobile
    • Startup

    Russian delegation arrives in Turkiye for Ukraine war talks

    Ben Sulayem drives major improvements to FIA’s international Sporting Code

    Thousands worldwide benefit from KSrelief medical programs

    Trent Alexander-Arnold to leave Liverpool

    Saudi minister in China to explore education, research cooperation

    Bangladesh’s largest private airline starts Riyadh flights as demand grows

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Ferrari Roma Spider road test: Drop-top model offers speed, style and sportiness

    Ferrari Roma Spider road test: Drop-top model offers speed, style and sportiness

    Soufiane Rahimi: Al Ain’s lodestar primed to shine in Asian Champions League final

    Soufiane Rahimi: Al Ain’s lodestar primed to shine in Asian Champions League final

    Dubai Esports and Games Festival expected to reach next level as biggest and best yet

    Dubai Esports and Games Festival expected to reach next level as biggest and best yet

    Can C’s afford to keep Hauser long-term? Salary cap guru weighs in

    Can C’s afford to keep Hauser long-term? Salary cap guru weighs in

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    macOS Sierra review: Mac users get a modest update this year

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Travel

    Shooting More than 40 Years of New York’s Halloween Parade

    Heroes of the Storm Global Championship 2017 starts tomorrow, here’s what you need to know

    Why Millennials Need to Save Twice as Much as Boomers Did

    Doctors take inspiration from online dating to build organ transplant AI

    How couples can solve lighting disagreements for good

    Ducati launch: Lorenzo and Dovizioso’s Desmosedici

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Review

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    Shadow Tactics: Blades of the Shogun Review

    macOS Sierra review: Mac users get a modest update this year

    Hands on: Samsung Galaxy A5 2017 review

    The Last Guardian Playstation 4 Game review

    Intel Core i7-7700K ‘Kaby Lake’ review

No Result
View All Result
Daystar news blog
No Result
View All Result
Home News Business

Exclusive-OpenAI’s stunning $150 billion valuation hinges on upending corporate structure, sources say

daystarnews by daystarnews
September 14, 2024
in Business
0
Exclusive-OpenAI’s stunning $150 billion valuation hinges on upending corporate structure, sources say
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

OpenAI’s new financing round is expected to come in the form of convertible notes, according to sources with direct knowledge of the matter, who said its $150 billion valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.

The details of the conditions of the $6.5 billion funding, which have not been previously reported, show how far OpenAI, the most valuable AI startup in the world, has come from a research-based non-profit, and the structural changes it’s willing to make to attract ever more investment to fund its expensive pursuit of artificial general intelligence (AGI), or AI that surpasses human intelligence.

The outsized funding round has seen strong investor demand and could be finalized in the next two weeks, given the rapid growth of OpenAI’s revenue, sources added.

Existing investors such as Thrive Capital, Khosla Ventures, as well as Microsoft are expected to participate. New investors including Nvidia and Apple also plan to invest. Sequoia Capital is also in talks to come back as a returning investor.

If the restructuring is unsuccessful, OpenAI would need to renegotiate its valuation with investors at which their shares will be converted, likely at a lower number, sources told Reuters, who requested anonymity to discuss private matters. 

Asked about the financing and potential change, OpenAI said in a statement that it remains focusing on building AI that benefits everyone while working with its non-profit board.

“The nonprofit is core to our mission and will continue to exist,” the company spokesperson said.

The removal of the profit cap would require approval from OpenAI’s non-profit board, consisting of Chief Executive Sam Altman, entrepreneur Bret Taylor and seven other members.

The company has also held discussions with lawyers about turning its non-profit structure to a for-profit benefit corporation, similar to what its rivals such as Anthropic and xAI are using, sources added, confirming media reports.

It is unclear if such fundamental corporate structural changes could happen. The removal of the profit cap, which put a limit on investors’ potential returns in OpenAI’s for-profit subsidiary, would hand early investors an even bigger win.

It could also raise questions about OpenAI’s governance and departure from its non-profit mission. OpenAI has said the cap was put in place to “incentivize them to research, develop, and deploy AGI in a way that balances commerciality with safety and sustainability, rather than focusing on pure profit-maximization.”

The San Francisco-based AI lab, founded in 2015 as a nonprofit research project, with the goal of building AI for the benefit of humanity, is currently controlled by a non-profit parent organization.

It has accelerated its commercialization efforts by selling subscription-based services like ChatGPT to consumers and enterprises, which now boasts over 200 million users.

Existing investors are beholden to a capped limit to their return on investment, with any additional returns to be routed to the non-profit.

Returns were capped at 100x the investment for investors in OpenAI’s first round of financing. “We expect this multiple to be lower for future rounds,” the company said in a 2019 blog post detailing the structure.

OpenAI used this model to raise more than $10 billion in recent years, with the majority coming from Microsoft. It was last valued at $80 billion in February in a tender offer deal where the company sold existing shares led by Thrive Capital.

Read More

Previous Post

Was a lack of get-up-and-go the death of the Neanderthals?

Next Post

WTA roundup: Camila Osorio battles into Guadalajara semis

daystarnews

daystarnews

Next Post
WTA roundup: Camila Osorio battles into Guadalajara semis

WTA roundup: Camila Osorio battles into Guadalajara semis

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 23.9k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest

HEADLINE: CENK TORUN FACES INTENSE LEGAL AND PERSONAL BATTLES. NAVIGATING COURTS, MANAGEMENT DISPUTES AND A DIVORCE. 

April 30, 2025

SHOCKING BLAST ROCKS CONSTRUCTION SITE AS AN AMERICAN CONTRACTOR WAS DETAINED THREE DEAD AND FIVE OTHERS INJURED.

October 27, 2024

THE POWER PLANT CONSTRUCTION SITE COLLAPSED IN DUBAI LEAVING ONE WORKER DEAD AND TWO OTHERS INJURED.

August 11, 2024

CEO OF PAVEL AND CONSTRUCTION COMPANY RELEASED FROM THE CUSTODY OF THE DEPARTMENT OF CORRECTIONAL SERVICES (DCS) IN SOUTH AFRICA.

July 5, 2024

Hello world!

1

The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

0

Shadow Tactics: Blades of the Shogun Review

0

macOS Sierra review: Mac users get a modest update this year

0

Nippon Steel shares rise after Trump approves $14.9 billion US Steel bid

June 16, 2025

Ranking all 18 Big Ten football stadiums from youngest to oldest

June 16, 2025

Q&A: How anacondas, chickens, and locals may be able to coexist in the Amazon

June 16, 2025

Israeli, Saudi stocks down as Middle East conflict worsens

June 16, 2025

Recent News

Nippon Steel shares rise after Trump approves $14.9 billion US Steel bid

June 16, 2025

Ranking all 18 Big Ten football stadiums from youngest to oldest

June 16, 2025

Q&A: How anacondas, chickens, and locals may be able to coexist in the Amazon

June 16, 2025

Israeli, Saudi stocks down as Middle East conflict worsens

June 16, 2025
Daystar news online

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Follow Us

Browse by Category

  • Apps
  • Business
  • Entertainment
  • Fashion
  • Food
  • Gadget
  • Gaming
  • Health
  • Highlights
  • Lifestyle
  • Mobile
  • Movie
  • Music
  • News
  • Politics
  • Review
  • Science
  • Sports
  • Startup
  • Tech
  • Travel
  • Uncategorized
  • World

Recent News

Nippon Steel shares rise after Trump approves $14.9 billion US Steel bid

June 16, 2025

Ranking all 18 Big Ten football stadiums from youngest to oldest

June 16, 2025

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.