OpenAI, the creator of ChatGPT, is set to undergo a significant restructuring, converting its core business into a for-profit benefit corporation. This change aims to enhance its appeal to investors while reducing the influence of its non-profit board, according to sources familiar with the matter.
The non-profit arm of OpenAI will continue to operate, maintaining a minority stake in the new for-profit entity. This shift could impact the governance and management of AI risks moving forward. Notably, Chief Executive Sam Altman will receive equity in the for-profit company for the first time, potentially valuing the company at around $150 billion post-restructuring. This plan also seeks to eliminate the existing cap on investor returns.
An OpenAI spokesperson emphasized the organization’s commitment to developing AI that benefits all, assuring that the non-profit aspect remains central to its mission. The restructuring details, initially reported by Reuters, signal a major overhaul in governance for one of the leading companies in artificial intelligence. The timeline for these changes remains uncertain as discussions continue among legal advisors and shareholders.
This restructuring comes amid a wave of leadership shifts within the company. Mira Murati, OpenAI’s longtime chief technology officer, recently announced her departure, while President Greg Brockman has been on leave. OpenAI began as a non-profit AI research entity in 2015 but established the for-profit OpenAI LP subsidiary in 2019 to secure funding from Microsoft and support its research initiatives.
The company gained international recognition with the launch of ChatGPT in late 2022, a generative AI application that quickly amassed over 200 million weekly active users, marking one of the fastest-growing applications in history. As a result, OpenAI’s valuation has surged from $14 billion in 2021 to an estimated $150 billion in its current funding discussions, attracting high-profile investors such as Thrive Capital and Apple.
The original governance structure, designed to ensure the mission of developing “safe AGI that is broadly beneficial,” is now under scrutiny. The recent boardroom drama last November, which saw Altman temporarily ousted, highlighted tensions within the organization. He was reinstated after five days, backed by strong support from employees and investors.
OpenAI’s refreshed board, now chaired by Bret Taylor, former co-CEO of Salesforce, consists of more technology executives. Any major corporate changes will still require approval from the non-profit board, which comprises nine members.
While this shift toward a typical startup model is likely to please investors, it raises concerns about whether OpenAI will maintain adequate governance to ensure accountability in its quest for AGI. Earlier this year, the company disbanded its superalignment team, which focused on long-term AI risks.
The extent of equity Altman will receive remains unclear. Although he is already a billionaire through various startup investments, Altman previously declined an equity stake to maintain a board composed of disinterested directors. He has expressed that his primary motivation is his passion for the work rather than financial gain.
OpenAI’s new structure may align more closely with that of competitors like Anthropic and Elon Musk’s xAI, which are registered as benefit corporations—entities that prioritize social responsibility and sustainability alongside profit-making.
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