OpenAI’s for-profit switch could include equity for Sam Altman

OpenAI describes its business structure as “a partnership between our original Nonprofit and a new capped profit arm,” which has been a contributing factor in last year’s short-lived board coup against CEO Sam Altman and a recent lawsuit by cofounder Elon Musk. But that’s reportedly set to change along with a massive new funding round that’s still being negotiated but could value the ChatGPT maker at more than $150 billion.

Now, Reuters cites unnamed sources saying that part of the new plan includes providing an equity stake to Altman for the first time, which Bloomberg reports could be about 7 percent.

Reuters sources said that in the new structure, OpenAI would proceed as a for-profit benefit corporation, like rival AI company Anthropic.

That business would “no longer be controlled by its non-profit board” and become more attractive to investors, with the nonprofit maintaining a minority ownership stake. However, for those concerned with OpenAI’s approach to safety vs. potential profits, it may be unsettling as the company pursues AI models capable of reasoning.

When Altman returned as CEO last November, his letter mentioned “improving our governance structure,” and that seems to be taking shape while other executives are leaving. OpenAI CTO Mira Murati announced her exit today, Reuters notes president Greg Brockman has been on leave, and former chief scientist Ilya Sutskever separated from the company earlier this year.

Update, September 25th: Added info from Bloomberg.