OpenAI, the artificial intelligence startup behind ChatGPT, is reportedly discussing a significant restructuring that would grant Chief Executive Officer Sam Altman a 7% equity stake in the company, according to people familiar with the matter.
This move marks a major shift for the company, as it pivots from its original nonprofit roots towards a for-profit model.
The company, founded in 2015 as a nonprofit research organization with the mission of developing AI that is safe and beneficial to society, is now considering transitioning into a public benefit corporation.
This type of entity aims to balance profitability with a broader commitment to societal good, the sources said. The restructuring discussions remain ongoing, and no specific timeline has been set for the change.
In a statement, OpenAI reaffirmed its commitment to developing AI for the benefit of all, stating that “the nonprofit is core to our mission and will continue to exist.” The spokesperson declined to comment further on Altman’s potential stake or the restructuring timeline.
This shift comes at a time of significant internal change at OpenAI. Mira Murati, the company’s chief technology officer and a influential figure in its development, announced her departure this week.
The company has also seen leadership transitions, with co-founder Greg Brockman currently on leave.
What to know
OpenAI’s move to restructure and grant Altman equity ownership shows the company’s ambition to attract more investment as it continues to scale. Since the launch of ChatGPT in late 2022, OpenAI has become a key player in the global AI race, attracting major funding from Microsoft and drawing interest from investors like Thrive Capital and Apple. The company’s valuation has soared, from $14 billion in 2021 to a potential $150 billion, as discussions over a new convertible debt round are underway.
The restructuring will likely allow OpenAI to raise more capital by removing current caps on returns for investors. This would make the company more competitive as it continues to develop advanced AI systems and position itself at the forefront of artificial general intelligence (AGI).
Despite the leadership changes and restructuring plans, OpenAI remains focused on its broader mission of advancing AI safety and ensuring that its technologies have a positive impact on society. However, as the company continues to navigate the balance between innovation, safety, and profitability, these changes signal a new phase in its evolution from nonprofit research lab to a major player in the for-profit tech landscape.
More insight
Sam Altman, the 39-year-old CEO of OpenAI, is a serial venture investor and one of the leading figures in the tech industry today. According to Forbes, Altman has an estimated net worth of $1 billion.
Altman became a partner at the renowned startup accelerator Y Combinator around that time and eventually served as its president from 2014 to 2019. Under his leadership, Y Combinator nurtured several successful companies, making it a cornerstone of Silicon Valley’s startup ecosystem. In 2019, Altman left Y Combinator to become the CEO of OpenAI, a leading artificial intelligence company currently valued at approximately $80 billion.
His wealth largely stems from his investments in other high-profile ventures, including stakes in companies like Stripe, Reddit, and nuclear fusion startup Helion. In addition to his ranking among the world’s billionaires, Altman was featured in Forbes’ “30 Under 30” in Venture Capital in 2015.