OpenAI will remove nonprofit control as CEO Sam Altman earns first share

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

Under the proposed plan, the nonprofit subsidiary will continue to exist, but will hold a minority stake in the for-profit company. The company plans to restructure into a for-profit benefit corporation and will give Altman an equity stake.

“We remain focused on building AI that benefits everyone and are working with our board to ensure we are best positioned to succeed in our mission. The nonprofit is central to our mission and will continue to be,” said an OpenAI spokesperson.

The restructuring comes amid a series of leadership changes at OpenAI. Director of Technology 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 launch of ChatGPT in 2022. The company’s valuation has since risen, with ongoing talks to raise $6.5 billion at a $150 billion valuation, growing. 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 oversight, the company may not have enough oversight in its pursuit of artificial general intelligence (AGI).

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