OpenAI To Transition From Non-Profit Governance, Award Equity To CEO Sam Altman
The restructuring could ease concerns among investors eager for more traditional governance structures, but it may also increase scrutiny from the AI safety community.
OpenAI is planning to restructure its operations into a for-profit benefit corporation, moving away from control by its non-profit board. This change aims to attract investors and increase the company’s valuation, potentially reaching $150 billion. CEO Sam Altman will receive equity in the new structure, marking his first ownership stake.
"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 company added that the non-profit will remain central to its mission and continue to exist.
While the OpenAI non-profit will continue to exist and retain a minority stake, the shift comes amid significant leadership changes, including the recent departure of CTO Mira Murati and the ongoing leave of President Greg Brockman. OpenAI's unique structure, initially designed to ensure the safe development of artificial general intelligence (AGI), has raised questions about how it will manage AI risks moving forward.
The restructuring may align OpenAI with other AI companies that operate as benefit corporations, promoting social responsibility alongside profitability. Altman’s acceptance of equity contrasts with his previous decision to avoid conflicts of interest on the board. The timeline and final details of the restructuring are still being finalized.
