OpenAI to abandon non-profit model
OpenAI, the company behind ChatGPT, is reportedly planning a significant restructure that will transform it into a for-profit benefit corporation.
This restructuring, reminiscent of models followed by competitors like Anthropic and X.ai, represents a break from the organisation’s original non-profit framework. This move, originally reported by Reuters citing anonymous sources, will mark a profound change in OpenAI’s governance and business model.
In this new structure, the non-profit arm of OpenAI would retain a minority stake but would relinquish its control over the company’s day-to-day operations. The reorganisation aims to make the company more attractive to investors by removing previous caps on returns and expanding equity opportunities for stakeholders.
Most notably, OpenAI’s CEO, Sam Altman, is expected to receive equity in the newly reformed for-profit entity, which has reportedly been valued at $150 billion. The exact amount of Altman’s stake remains unclear, but insiders have indicated that the overhaul is intended to offer him and other key figures the financial incentives needed to draw substantial new investment into the company.
"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 non-profit is core to our mission and will continue to exist," an OpenAI spokesperson told Reuters.
The specifics of OpenAI’s restructuring are still under negotiation between legal teams and shareholders, with no confirmed timeline for its conclusion. However, the company has already started implementing key changes. Last week, it unveiled a major update to its AI governance framework by promoting the Safety and Security Committee to act as an independent oversight board – responsibilities that were once managed by the non-profit board.
The restructuring coincides with notable shifts in OpenAI's leadership. On Wednesday 25th September, Mira Murati, the startup's long-serving Chief Technology Officer, unexpectedly announced her exit. Meanwhile, Greg Brockman, OpenAI’s President, has also been on leave, adding to the turbulence as the company navigates its evolving structure.
