In a significant shift, OpenAI is planning to abandon the nonprofit structure of its core business. This move, reportedly designed to attract investors, would see the removal of the authority of its board of directors and grant CEO Sam Altman equity in the company.
While a spokesperson for OpenAI assured Reuters that the company remains dedicated to “building AI that benefits everyone,” the restructuring plan has raised eyebrows. The nonprofit portion of the business won’t be completely dissolved. Instead, it will continue to exist and retain a minority stake in the overall company.
The potential for Altman to receive a whopping $150 billion in equity from the restructured company adds another layer of complexity to this story. This comes after Altman was fired by the board of directors in November, only to be reinstated shortly after.
Since Altman’s return, OpenAI has experienced a wave of high-level departures. Researchers Jan Leike and Ilya Sutskever left in May, citing the company’s disregard for safety guidelines in favor of building “shiny products.” Chief technology officer Mira Murati, Chief Research Officer Bob McGrew, and senior research executive Barret Zoph also resigned this week, although Altman denies their departures are related to the restructuring plan.
OpenAI, founded in 2015 as a nonprofit research organization, established a for-profit subsidiary, OpenAI LP, in 2019 to secure funding from Microsoft. The company’s valuation has skyrocketed from $14 billion in 2021 to $150 billion following the release of ChatGPT in 2022. This restructuring plan, currently being vetted by lawyers and stakeholders, could have far-reaching implications for the future of OpenAI and the development of artificial intelligence.
