OpenAI to remove nonprofit control as CEO Sam Altman gains first equity stake

OpenAI, is planning a significant restructuring that will see its nonprofit board relinquish control over its for-profit business, according to Reuters. The restructuring would transform OpenAI into a for-profit benefit corporation, making it more attractive to investors.

Under the proposed plan, the nonprofit arm will continue to exist but will hold a minority stake in the for-profit company. The company plans to restructure to a for-profit benefit corporation and will give Altman an equity 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. The nonprofit is core to our mission and will continue to exist,” an OpenAI spokesperson said.

The restructuring comes amid a series of leadership changes at OpenAI. Chief Technology Officer Mira Murati announced her departure today, joining a list of high-profile exits that includes co-founder Greg Brockman, who is currently on leave.

OpenAI, founded in 2015 as a nonprofit with the goal of developing safe AI, gained significant attention with the release of ChatGPT in 2022. The company’s valuation has since surged, with discussions currently underway to raise $6.5 billion at a valuation of $150 billion, up from $86 billion earlier this year.

However, the governance changes are raising concerns within the AI safety community, as OpenAI recently disbanded its superalignment team, which focused on long-term AI risks. Critics fear that without nonprofit control, the company may lack sufficient oversight in its pursuit of artificial general intelligence (AGI).