OpenAI plans to remove its non-profit tag and restructure the company into a for-profit, as well as give Sam Altman equity. The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, sources tell Reuters. However, the move was made to reportedly attract more investor interest.
Altman’s stake in the company could be worth $150 billion after the restructuring, sources say. “We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission,” an OpenAI spokesperson said. “The non-profit is core to our mission and will continue to exist.”
The plan is still being hashed out with lawyers and shareholders, the sources added. The timeline for completing the restructuring remains uncertain, as well as Altman’s exact stake.
OpenAI has become the leading company in the growing artificial intelligence sector of technology. It is the developer behind the popular AI software ChatGPT. Few tech products have ever experienced the meteoric rise of the ChatGPT software. The AI chatbot debuted in 2022 and reached 1 million users just five days after it launched. Its arrival set off a digital revolution. Some of the most prominent companies in the world have sought to enter the space and compete with the program, including Apple and Google.
The proposed corporate restructure highlights significant governance changes happening behind the scenes of OpenAI. The company was founded in 2015 as a non-profit AI research organization. However, its recent growth approaching its 10th anniversary has driven the company into a new direction. The removal of non-profit control could make OpenAI operate more like a normal startup, a positive move for investors who have invested billions into the company.
