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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.
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