Exclusive: OpenAI’s $150 Billion Valuation Dependent on Major Corporate Overhaul

Sept 13 (Reuters) – OpenAI’s latest financing round is set to feature convertible notes, and its anticipated $150 billion valuation hinges on a major restructuring, sources close to the matter revealed. The artificial intelligence powerhouse aims to remove the profit cap imposed on investors to secure a $6.5 billion funding boost.

This significant shift highlights OpenAI’s evolution from a research-focused non-profit to the world's most valuable AI startup, committed to developing artificial general intelligence (AGI) that exceeds human capabilities. The forthcoming restructuring represents a pivotal moment as OpenAI seeks to attract further investment to fuel its ambitious goals.

Investor interest has been robust, with existing backers like Thrive Capital, Khosla Ventures, and Microsoft expected to contribute, along with newcomers Nvidia and Apple. Sequoia Capital is also in discussions to rejoin as an investor.

If the restructuring fails, OpenAI might need to renegotiate its valuation, potentially leading to a lower conversion rate for investor shares. OpenAI has acknowledged the potential changes but reaffirmed its commitment to its non-profit mission, which remains central to its vision.

The overhaul, including the potential removal of the profit cap, requires approval from OpenAI’s non-profit board, which includes CEO Sam Altman and entrepreneur Bret Taylor among others. Discussions are also underway about transforming the organization into a for-profit benefit corporation, a move already adopted by competitors like Anthropic and xAI.

The current cap, which limits investor returns and directs excess profits to the non-profit arm, was designed to align commercial incentives with safety and sustainability in AGI development. Removing this cap could significantly enhance returns for early investors but might raise concerns about governance and the departure from OpenAI’s original mission.

Founded in 2015 as a non-profit, OpenAI has shifted towards commercialization, now offering subscription-based services like ChatGPT, which has surpassed 200 million users. Its previous valuation stood at $80 billion as of February, following a tender offer led by Thrive Capital.