OpenAI Faces Leadership Exodus and Major Restructuring Amidst $7 Billion Fundraising Effort
The AI startup plans to transition to a for-profit model while grappling with significant financial losses and executive departures.
- OpenAI is restructuring to become a for-profit public benefit corporation, moving away from nonprofit board control.
- The company expects to raise $7 billion in a funding round that could value it at $150 billion, despite Apple withdrawing from investment talks.
- OpenAI is projecting a $5 billion loss this year, with revenues of $3.7 billion, largely due to operational costs and computing expenses.
- The price of GPT Plus is set to increase from $20 to $22 per month by the end of the year, with further hikes to $44 over the next five years.
- Several key executives, including CTO Mira Murati, have recently resigned, adding to internal turmoil as the company navigates its rapid growth.