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OpenAI may pay its nonprofit arm ‘billions of dollars’ in conversion to for-profit
OpenAI's transition away from a for-profit corporation governed by a nonprofit board is well underway — and the nonprofit could be compensated royally for it.
There’s pressure to get a deal done; reportedly, OpenAI must change its corporate structure within two years or the $6.6 billion the company recently raised will convert to debt. “There’s a nonprofit and a for-profit in one corporate structure, and we’re thinking about how to reconfigure that,” OpenAI board chairman Bret Taylor said at Axios’ AI+ Summit in San Francisco on Tuesday. By 2018, struggling to raise enough capital to fuel their ambitions, some within the group agreed to a new corporate structure: a for-profit OpenAI able to take on investors while still answering to the nonprofit board.
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