It is reported that OpenAI is considering a transition to profit when the CEO board overlaps

Artificial intelligence (AI) company OpNIA is reportedly considering transitioning from a for-profit corporation to an unrestricted for-profit model.

As first reported by The Information, CEO and founder Sam Altman told shareholders he would consider the move during the week of June 10. If this happens, the merger could cause OpenAI's non-profit board to lose control of the company.

OpenAI currently has a private valuation of approximately $86 billion. The current structure is described on the company's website as “a partnership between the original non-profit organization and the new hedged for-profit arm.”

The same website mentions that the move to “reduced profits” is to promote research in the field of Artificial General Intelligence (AGI) and to maintain the company's vision. Why is the shift necessary? According to OpenAI, the “donations” required to operate the company were insufficient and a new funding model was needed to incentivize stakeholders.

However, as of now, the website still contains a warning for stakeholders to consider their investments as donations.

“Investing in OpenAI Global, LLC is a high-risk investment. Investors may lose their capital contribution and see no return. It is wise to approach any investment in OpenAI Global, LLC with a gift, understanding that it may be difficult to determine what role money will play in a post-AGI world.

The push to restructure the company comes as CEO Sam Altman reshuffles the board to include himself and several newly appointed and elected stakeholders. These include Sue Desmond-Hellman, former CEO of the Bill & Melinda Gates Foundation, former Sony VP Nicole Seligman, and Instacart CEO and Chairman Fiji Simo.

A recent addition to the board is retired US Army General and former National Security Agency Director Paul Nakasson.

Nakasone's appointment to the board of directors drew a vitriolic response from former US intelligence whistleblower Edward Snowden.

Snowden, in a post on X.com, warned the public to “never trust @OpenAI or its products,” citing ChatGPT by name as “just one reason to appoint the director of @NSAGov to your board.” The post concluded with a sobering warning: “It is a deliberate denial of the rights of every person on earth.” You have been warned.

Related: Tesla investors sue Elon Musk for diverting wealth, talent to xAI