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OpenAI’s huge valuation contingent on upending corporate structure
Tuesday September 17, 2024. 02:58 PM , from Mac Daily News
Krystal Hu and Kenrick Cai for Reuters: The details of the conditions of the $6.5 billion funding, which have not been previously reported, show how far OpenAI, the most valuable AI startup in the world, has come from a research-based non-profit, and the structural changes it’s willing to make to attract ever more investment to fund its expensive pursuit of artificial general intelligence (AGI), or AI that surpasses human intelligence. The outsized funding round has seen strong investor demand and could be finalized in the next two weeks, given the rapid growth of OpenAI’s revenue, sources added. Existing investors such as Thrive Capital, Khosla Ventures, as well as Microsoft are expected to participate. New investors including Nvidia and Apple also plan to invest. Sequoia Capital is also in talks to come back as a returning investor. If the restructuring is unsuccessful, OpenAI would need to renegotiate its valuation with investors at which their shares will be converted, likely at a lower number, sources told Reuters, who requested anonymity to discuss private matters. MacDailyNews Note: The removal of the profit cap would require approval from OpenAI’s nine-member non-profit board which includes CEO Sam Altman. We are currently about 1/7th of the way to being sustainable with Substack subscriptions. Not a bad start! Please tell your friends about MacDailyNews on Substack and, if you’re currently a free subscriber, please consider $5/mo. or $50/year to keep MacDailyNews going. Just hit the subscribe button. Thank you! Read on Substack Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you! Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post OpenAI’s huge valuation contingent on upending corporate structure appeared first on MacDailyNews.
https://macdailynews.com/2024/09/17/openais-huge-valuation-contingent-on-upending-corporate-structur
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