Recently, according to Reuters, OpenAI is undergoing a new round of financing with a staggering valuation of $150 billion. However, behind this remarkable valuation, OpenAI must undergo a significant corporate structure adjustment to remove the profit ceiling for investors. The latest financing will be conducted in the form of convertible notes, and the specific progress depends on whether this startup can successfully alter its existing corporate structure.
Looking back at OpenAI's history, since its establishment in 2015, it initially aimed to develop cutting-edge artificial intelligence technology as a non-profit organization, with the goal of "benefiting all humanity without financial return constraints." However, over the years, OpenAI has gradually formed a "profit-capped" subsidiary, which has helped it attract billions of dollars in investment to develop its large language models, ChatGPT, and other expensive generative AI products.
If this restructuring fails, OpenAI will have to renegotiate its valuation with investors, potentially leading to a reduction in the amount of their shares upon conversion. According to the latest news, OpenAI has discussed with its lawyers the possibility of transitioning from a non-profit structure to a profit-making public company. This marks the challenges and changes OpenAI faces in its development.
In terms of corporate governance, OpenAI's founding team has also experienced many ups and downs. Last year, CEO Sam Altman was ousted by the board due to disagreements over company expansion, but he was reinstated a week later with a new board, including former Salesforce co-CEO Bret Taylor and former Treasury Secretary Larry Summers. Currently, only a few members of OpenAI's original founding team remain.
Reports indicate that this funding round will be led by Thrive Capital, and Microsoft is also interested in participating. Additionally, Apple and NVIDIA are in discussions about investing in OpenAI. Since February 2023, OpenAI's valuation has been $86 billion, and this round of financing will be another attempt to significantly boost its valuation in a short period.
Key Points:
🌟 OpenAI is conducting a financing round through convertible notes with a valuation of up to $150 billion.
🔄 If the corporate structure restructuring is unsuccessful, OpenAI will need to renegotiate its valuation with investors.
🤝 This financing is expected to be led by Thrive Capital, with Microsoft, Apple, and NVIDIA also interested in participating.