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Tom’s Hardware
Tom’s Hardware
Technology
Hassam Nasir

OpenAI switching to a for-profit company to raise more cash as it continues to lose money

OpenAI.

In a new blog post, OpenAI outlines its plans to become a for-profit organization while maintaining its core mission of "ensuring that Artificial General Intelligence (AGI) benefits all of humanity."

The move is a significant shift from its non-profit roots in 2015, which later transformed into a "capped" for-profit, with the non-profit arm spearheading the company's operations in line with its mission. However, these ambitions have been spoiled by the rising costs of running AI; server racks equipped with Nvidia's Blackwell chips reportedly cost $3 million or more. This transition towards a for-profit has ignited unwanted controversy despite being inevitable for competitive reasons.

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