OpenAI Chair Bret Taylor announced on Thursday that the company’s board has engaged in discussions regarding equity compensation for CEO Sam Altman, although no decisions have been finalized.
In a statement, Taylor clarified that no specific figures for any potential equity compensation have been put forth for Altman. This announcement follows a Reuters report indicating that OpenAI is exploring a plan to transform its core business into a for-profit benefit corporation, with Altman potentially receiving equity for the first time within this new structure.
Altman, a co-founder of OpenAI in 2015, has not previously taken a stake in the company. Although he is already a billionaire due to his investments in various startups, he has expressed a preference against accepting shares in OpenAI. This decision was influenced by the necessity for the board to maintain a majority of disinterested directors without a financial stake in the organization.
On Wednesday, OpenAI experienced a shake-up as Chief Technology Officer Mira Murati, along with senior research executives Barret Zoph and Bob McGrew, announced their departures from the company. Speaking at a conference in Italy on Thursday, Altman denied any connection between these personnel changes and the ongoing restructuring efforts.
In parallel, OpenAI is reportedly in discussions with investors to secure $6.5 billion in funding. Potential backers are expected to include notable venture capital firms like Thrive Capital and Khosla Ventures, alongside major corporations such as Microsoft, Nvidia, and Apple.
According to Reuters, OpenAI’s projected valuation of $150 billion hinges on the successful implementation of its corporate restructuring, which would involve lifting the cap on returns for investors. The proposed for-profit entity would operate independently from the board that currently governs the non-profit organization, which was responsible for Altman’s brief ousting last November. However, the non-profit will remain operational and maintain a minority stake in the new for-profit structure, as reported by sources familiar with the situation.
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