The reported discussions come as the company adds a former NSA director to its board.

OpenAI, an artificial intelligence company, is reportedly considering a shift from its current capped-profit corporation model to a fully for-profit structure. This potential change was first reported by The Information, which stated that CEO and co-founder Sam Altman informed shareholders about this consideration during the week of June 10. If this transition occurs, it would result in OpenAI's nonprofit board losing control of the company.

Currently, OpenAI operates as a partnership between its original nonprofit entity and a new capped profit arm. This structure was designed to incentivize research into artificial general intelligence (AGI) while adhering to the company’s vision. The shift to a capped profit model was deemed necessary due to insufficient donations to sustain the company’s work, requiring a new cash infusion model to attract stakeholders. Despite this model, the company still advises stakeholders to treat their investments as high-risk and akin to donations, with no guaranteed return.

The push to restructure the company aligns with recent changes to OpenAI’s board of directors, which now includes CEO Sam Altman and several newly appointed members. These members are Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former Sony vice president; Fidji Simo, CEO and chair of Instacart; and retired U.S. Army general Paul Nakasone, former director of the National Security Agency (NSA).

Paul Nakasone’s addition to the board has sparked controversy, notably from former U.S. intelligence contractor Edward Snowden. Snowden criticized the move on social media, warning the public not to trust OpenAI or its products, specifically mentioning ChatGPT. He suggested that Nakasone’s appointment was a deliberate betrayal of global privacy rights, hinting at potential implications for surveillance and data privacy.

This potential shift to a for-profit model and the contentious board appointments reflect OpenAI’s evolving strategy as it navigates the complex landscape of AI development and commercialization. The changes could have significant implications for the company’s governance, stakeholder relations, and public trust.