OpenAI is reportedly working on a significant restructuring that would transition its core operations to a for-profit benefit corporation, moving away from its current non-profit governance model. This change aims to enhance the company’s appeal to investors while ensuring the non-profit arm continues to exist and maintains a minority stake in the new structure, according to sources familiar with the situation.
As part of this restructuring, CEO Sam Altman is set to receive equity for the first time, potentially valuing the company at around $150 billion. The plan includes removing the existing cap on investor returns, which has drawn attention from major investors, including Thrive Capital and Apple.
An OpenAI spokesperson emphasized the organization’s commitment to developing AI for the benefit of all, noting that the non-profit will remain central to its mission. However, the details of the restructuring are still being finalized, with timelines and legal considerations under review.
This corporate shift follows recent leadership changes within OpenAI, including the abrupt departure of Chief Technology Officer Mira Murati and a leave of absence from President Greg Brockman. Founded in 2015 as a non-profit, OpenAI established a for-profit subsidiary in 2019 to secure funding, most notably from Microsoft.
The introduction of ChatGPT in late 2022 significantly boosted OpenAI’s profile, making it one of the fastest-growing applications with over 200 million weekly active users. The valuation of the company skyrocketed from $14 billion in 2021 to the current projections amid a global investment surge in AI technologies.
The restructuring raises questions about governance and accountability in AI safety. The original structure aimed to ensure the responsible development of artificial general intelligence (AGI). Recent events, including boardroom upheavals and the dissolution of a dedicated superalignment team focused on long-term AI risks, have intensified concerns about maintaining adequate oversight.
While the shift to a for-profit model aligns OpenAI more closely with traditional startups, it could prompt scrutiny from the AI safety community regarding its commitment to ethical development in the pursuit of AGI. The new governance structure will likely resemble those of competitors like Anthropic and Elon Musk’s xAI, both of which operate as benefit corporations focused on social responsibility alongside profit-making.
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