OpenAI restructures to attract investments for AI growth, facing criticism from Musk and Meta

From Nasdaq.: 2024-12-27 11:00:41

OpenAI is restructuring to attract new investments for advancing AI. They are converting their for-profit arm into a public benefit corporation, valuing the company at $157 billion. Rivals like Anthropic and xAI have also raised billions, prompting OpenAI to remove profit caps for investors.

Elon Musk and Meta Platforms are challenging OpenAI’s restructuring plans. Musk filed lawsuits, accusing OpenAI of prioritizing profits over public good. Despite criticism, analysts believe this transition is crucial for securing the billions needed to stay ahead in AI innovation. OpenAI aims to compete with Anthropic and xAI in the AI arms race.



Read more at Nasdaq.: OpenAI Restructures to Secure Billions for AI Growth