San Francisco, Thursday, September 26, 2024 –CEO of OpenAI Sam Altman is set to receive equity in the company for the first time as part of a significant restructuring, reports say.
OpenAI, the company behind ChatGPT, is going through a restructuring process from a non-profit to a for-profit benefit corporation. While the non-profit entity will retain a minority stake, significant governance changes are underway.
The cap on investor returns is also set to be eliminated, which could potentially boost OpenAI’s valuation to a staggering $150 billion.
Altman’s acquisition of equity is seen as a notable development, as it aligns his interests more closely with those of the company’s investors.
The restructuring follows internal leadership shifts, including the sudden departure of CTO Mira Murati and the leave of absence of President Greg Brockman. As OpenAI continues to expand its global influence in artificial intelligence, concerns about AI safety and governance have emerged, especially after the dissolution of its superalignment team earlier this year.
Founded in 2015 as a non-profit AI research firm, OpenAI added a for-profit arm in 2019 to secure funding. The company’s ChatGPT launch in 2022 transformed it into one of the fastest-growing applications, boasting over 200 million weekly active users. The restructuring could mirror the models of competitors like Anthropic and Elon Musk’s xAI, both benefit corporations.
Despite these changes, the company insists that it remains committed to building AI that benefits everyone. Still, the removal of non-profit control has raised questions about long-term accountability as OpenAI navigates the risks and opportunities of advanced AI development.
