OpenAI aims for a valuation of $15 billion: completes convertible note financing within two weeks, with the valuation of the convertible notes depending on company structure

The valuation of 150 billion dollars is not a dream when revolutionary "structural change" accelerates the absorption of "super funds"! Earlier, there were reports that OpenAI, the maker of ChatGPT, was in talks to raise $6.5 billion from investors at a company valuation of $150 billion. The latest news shows that this financing is expected to be completed within two weeks, in the form of convertible notes, and its valuation of over $100 billion will depend on whether OpenAI can disrupt complex company structures and eliminate investors' profit caps. Disruptive "restructuring" of non-profit structures Founded in 2015, OpenAI is a non-profit research project aimed at creating artificial intelligence that benefits humanity. The company has accelerated its commercialization process by selling subscription services such as ChatGPT to consumers and businesses, with its number of users now exceeding 200 million. Currently, the company's for-profit division is controlled by the non-profit parent organization, a structure that presents certain challenges in attracting investors. According to Fortune magazine, company co-founder and CEO Sam Altman said at an all-staff meeting, "OpenAI's structure is likely to change next year to make it more like a traditional for-profit enterprise." In a statement, OpenAI said, "We remain focused on creating AI that benefits everyone, as we have said before, we are working with the board to ensure that we can complete our mission in the best possible way. The non-profit organization is at the core of our mission and will continue to exist." However, sources revealed that if the restructuring is not successful, OpenAI will need to renegotiate its valuation with investors, at which point their shares may be converted at a lower price. In addition, OpenAI is also discussing with lawyers the possibility of transforming its non-profit structure into a for-profit benefit corporation, similar to the model adopted by its competitors Anthropic and xAI. Profit cap abolition remains a challenge However, analysts have pointed out that it is not yet clear whether this fundamental change in corporate structure can be achieved. Removing the profit cap would bring greater returns to early investors, but it could also raise questions about OpenAI governance and deviation from its non-profit mission. At the same time, this change also requires approval from the OpenAI non-profit organization's board of directors, which includes CEO Sam Altman, entrepreneur Bret Taylor, and seven other members. OpenAI has stated that the profit cap is set to "incentivize them to research, develop, and deploy AGI in a balanced way between commercial, safety, and sustainability, rather than purely pursuing profit maximization." Existing investors are limited by the investment return cap, with any additional returns being redirected to the non-profit organization. In OpenAI's first round of financing, investors had a cap of 100 times their investment amount. The company stated in 2019 that "we expect the multiples of future rounds to be lower." In recent years, OpenAI has raised over 10 billion dollars using this model, with most of the funding coming from Microsoft. In addition, the company was valued at $80 billion in a financing round in February, led by Thrive Capital. Super Financing Not Just "Tech Giants" This large-scale financing round has also seen strong demand from investors, with reports stating, "Given the rapid growth of OpenAI's revenue, the financing could be completed within the next two weeks." Existing investors such as Thrive Capital, Khosla Ventures, and Microsoft are expected to participate. New investors including Nvidia and Apple are also planning to join the investment. Sequoia Capital is also in talks to return. This article is sourced from "Wall Street Seen", author: Huang Wenwen; GMTEight editor: Yan Wencai.