"At the same time, though, there's the problem of the company's actual financial situation. OpenAI's towering third quarter net losses is an estimate based on US Securities and Exchange Commission filings from Microsoft, which owns a large stake in OpenAI. In one passage, Microsoft reveals that its current net income was weakened by losses from its investment in OpenAI, subtracting $3.1 billion from its profits."
"which is still nominally controlled by a non-profit, into a public benefit corporation last week, a move that allows it to raise and make money more like a typical for-profit company. It will also allow OpenAI to list itself on the stock market, and reporting from Reuters suggests that it's already preparing an initial public offering that would value the company at $1 trillion - double its current worth -"
OpenAI recorded an estimated $11.5 billion net loss for the most recent quarter, derived from Microsoft disclosures showing a $3.1 billion reduction in Microsoft’s net income tied to its OpenAI investment and a 27 percent ownership stake. OpenAI restructured its for-profit arm into a public benefit corporation, enabling it to raise capital and operate more like a for-profit entity while remaining nominally controlled by a non-profit. OpenAI is preparing an initial public offering that could value the company at $1 trillion. Projected revenue for the year is about $20 billion, while cash burn remains exceptionally high.
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