Artificial intelligence (AI) company OpenAI seeks to change its corporate structure to continue its partnership with tech giant Microsoft (MSFT). It is aiming to keep Microsoft’s support around after it reaches artificial general intelligence (AGI). Under its current terms, Microsoft’s access to OpenAI’s technology would be nullified after it achieves AGI. Its Board of Directors will determine when it hits this milestone.
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If OpenAI changes this stipulation, it will go a long way toward securing additional funds, as Microsoft is one of its biggest investors. However, the heart of the problem is its status as a non-profit company. The clause was created to prevent OpenAI from misusing its AI research to chase corporate profits.
OpenAI May Have Trouble Changing Its Structure
OpenAI’s desire to switch from a non-profit to a for-profit company has already caused issues. That includes a lawsuit from Elon Musk over the planned change. Musk was an early investor in OpenAI and sits on its Board. He opposes the change and seeks to stop it through legal recourse. This could delay the company’s plans to shift its business.
OpenAI would likely see great profits by switching from a non-profit. It’s already one of the biggest AI companies, with a valuation of $157 billion. That valuation could continue to increase with additional funding from Microsoft and other backers, such as SoftBank (SFTBY).
How to Invest in OpenAI
OpenAI is a private company, meaning investors can’t take a direct stake in it. Instead, holding shares in OpenAI’s investors is their best option. Microsoft, Softbank, Nvidia (NVDA), and Fidelity National Financial (FNF) are major public companies with stakes in OpenAI. NVDA appears to be the best bet with a Strong Buy analysts’ consensus rating, a $176.14 price target, and a potential 22.39% upside for its shares.
