OpenAI to Restructure, CEO Sam Altman Gains Equity Stake Amid Governance Changes

OpenAI plans to restructure into a for-profit benefit corporation, giving CEO Sam Altman his first equity stake. While the nonprofit arm will retain a minority stake, critics worry the shift may reduce oversight in the pursuit of AGI.

OpenAI is set to undergo a significant restructuring, shifting control from its nonprofit board to a for-profit benefit corporation. This move, reported by Reuters, is aimed at attracting more investment as the company continues to scale its groundbreaking AI technologies. As part of the restructuring, CEO Sam Altman will gain his first equity stake in the company.

The nonprofit arm of OpenAI, originally created to ensure the safe development of AI, will continue to exist but will hold only a minority stake in the newly structured for-profit business. A spokesperson for OpenAI emphasized the company’s commitment to its mission:
“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.”

This restructuring comes at a time of major leadership changes within the company. Chief Technology Officer Mira Murati recently announced her departure, following other high-profile exits, including co-founder Greg Brockman, who is currently on leave.

Founded in 2015 as a nonprofit with the goal of developing safe and ethical AI, OpenAI garnered global attention with the launch of ChatGPT in 2022. The company has since seen its valuation skyrocket, with ongoing discussions to raise $6.5 billion, potentially increasing its valuation to $150 billion from $86 billion earlier this year.

However, the shift in governance has sparked concerns within the AI safety community. The recent disbanding of OpenAI’s superalignment team, which was dedicated to managing long-term AI risks, has raised fears that without nonprofit control, the company may pursue artificial general intelligence (AGI) without sufficient oversight.

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