OpenAI will transition to a for-profit structure, Altman will receive equity reports from Investing.com

Investing.com– OpenAI is working on a plan to restructure its core business into a for-profit structure in an attempt to make ChatGPT maker more attractive to investors, with CEO Sam Altman set to receive equity in return, they showed several reports. Wednesday.

The company also announced a number of resignations in its top management, including chief technology officer Mira Murati, director of research Bob Mcgrew and vice president of research Barret Zoph.

OpenAI’s plans to move to a for-profit model were first reported by Reuters and come as the company is courting investors for a $6.5 billion capital raise. Long-term investor Microsoft Corporation (NASDAQ: ) is expected to participate in the round, as are Apple Inc (NASDAQ: ), NVIDIA Corporation (NASDAQ: ) and United Arab Emirates firm MGX, the Wall Street Journal recently reported.

Recent reports have also shown that OpenAI is valued at around $150 billion, making it one of the most valuable start-ups in the world.

The firm started as a non-profit AI research organization in 2015 and added the for-profit AI entity that manages its ChatGPT product as a subsidiary in 2019.

The firm is now trying to make the AI ​​entity its core, for-profit business, with the nonprofit still poised to exist with a minority stake in the entity. OpenAI is also trying to remove limits on returns for investors, reports have shown.

CEO Altman will potentially receive a 7 percent stake in OpenAI after the for-profit swap, Bloomberg reported. Altman has become the face of OpenAI for the past two years, after the launch of ChatGPT sparked a mad dash for artificial intelligence.

Altman announced the resignations of Murati, Mcgrew and Zoph on social media platform X. He said that VP of Research Mark Chen will be OpenAI’s new SVP of Research and lead the company’s research wing, with Jakub Pachocki as the man chief scientist.

OpenAI has seen a number of resignations over the past year, including several of its co-founders, after top executives and the board tried to oust Altman last November.

But Altman was quickly reappointed while the company’s board was overhauled.