OpenAI describes its business structure as “a partnership between our original Nonprofit and a new capped profit arm,” which has been a contributing factor in last year’s short-lived board coup against CEO Sam Altman and a recent lawsuit by cofounder Elon Musk. But that’s reportedly set to change along with a massive new funding round that’s still being negotiated but could value the ChatGPT maker at more than $150 billion.
Now, Reuters cites unnamed sources saying that part of the new plan includes providing an equity stake to Altman for the first time, which Bloomberg reports could be about 7 percent.
Reuters sources said that in the new structure, OpenAI would proceed as a for-profit benefit corporation, like rival AI company Anthropic.
That business would “no longer be controlled by its non-profit board” and become more attractive to investors, with the nonprofit maintaining a minority ownership stake. For those concerned about OpenAI’s approach to safety and potential benefits, however, there may be concerns as the company pursues AI models that are thought-provoking.
When Altman returned as CEO in November, his letter referred to “improving our organizational structure” and seemed to be taking shape during his tenure. other directors as CEOs. OpenAI CTO Mira Moratti announced her departure today, Reuters reports that president Greg Brockman is on leave, and former chief scientist Ilia Sotskur will leave the company earlier this year.
