Towards the end of last year, OpenAI publicly announced its plans to evolve into a for-profit entity to achieve its mission. Its current arrangement features a for-profit organization controlled by a nonprofit, with a capped profit. The restrictions prevent the ChatGPT maker from raising money and compensating investors.
The AI firm was on the verge of bankruptcy, with projections of $5 billion in losses within the next year. However, its investors, including Microsoft, NVIDIA, and SoftBank raised $6.6 billion through its latest round of funding, keeping its business operations afloat and pushing its market capitalization well beyond $157 billion.
