OpenAI, the lauded artificial intelligence start-up that created ChatGPT, is reportedly making plans to significantly alter its organizational structure, shifting from a nonprofit to a profit-making model. These changes propose to make Chief Executive Officer Sam Altman a holder of 7% of the equity of the reorganized entity.
Incorporated in 2015 as a nonprofit dedicated to ensuring artificial intelligence benefits humanity, OpenAI’s transition marks a huge shift. The company is considering becoming a public benefit corporation, aiming to balance profitability with social good.
According to sources familiar with the matter, this infrastructure change aims to secure additional resources as OpenAI undergoes massive expansion. OpenAI issued a statement alleviating fears that its profit-seeking aspirations would compromise its dedication to pursuing social good through AI: “The nonprofit is core to our mission and will continue to exist.” However, the spokesman declined to elaborate on Altman’s potential stake or the restructuring timeline.
Notably, this development coincides with significant leadership changes, including the resignation of Chief Technology Officer Mira Murati and ongoing management transitions, with co-founder Greg Brockman currently on leave.
OpenAI’s valuation has surged from $14 billion in 2021 to $150 billion, attracting substantial investments from Microsoft and other key players like Thrive Capital and Apple.
