How can OpenAI worth 30 billion usd while it is supposed to be a non-profit organization ?

Mohcine Heddi
6 replies
Howdy 🤠, OpenAI announced its transition to a “capped profit” model in March 2019. At the time it was to attract investment or raise funds. And it’s done that. A question many have is why “open” access to models isn’t possible too?

Replies

Abdul Ella
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Abdul Ella
OpenAIoperates with a hybrid structure: OpenAI LP, a for-profit entity, and OpenAI Inc., its non-profit parent. The for-profit arm allows it to attract substantial investment to fuel its advanced AI research and development. The $30 billion valuation reflects the high market potential and significant revenue-generating capabilities of OpenAI's technologies and products, despite its non-profit roots.
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Amelia
Open access to AI models is not yet possible due to the high cost of training and maintaining models, intellectual property concerns, and the potential for misuse of models.Check Some models here
Amelia
OpenAI's valuation of $30 billion stems from its shift from a non-profit to a capped-profit model, which allows it to receive substantial funding while still setting limits on returns to investors. This model supports both its research goals and growth potential, making its high valuation feasible. You can estimate valuations using CalculatorFlares.
Narmela
OpenAI started as a non-profit but transitioned to a capped-profit model in 2019, allowing it to attract major private investment while limiting investor returns. This change enabled rapid growth, contributing to its $30 billion valuation. For more, check this