ChatGPT-maker OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board, reports said.
The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, said people familiar with the matter. The move could also have implications for how the company manages AI risks in a new governance structure, they said.
OpenAI CEO Sam Altman will also receive equity for the first time in the for-profit company, which could be worth US$150 billon ($220 billion) after the restructuring as it also tries to remove the cap on returns for investors,sources added.
Sources said that details of the proposed corporate structure is still being worked through with lawyers and shareholders and the timeline for completing the restructuring remains uncertain.
OpenAI was founded in 2015 as a nonprofit research organisation and created a for-profit subsidiary in 2019 to help fund the high costs of AI model development.
It has since drawn billions of dollars in outside investment, including from its largest shareholder Microsoft.
Separately, chief technology officer Mira Murati announced her departure from OpenAI, leaving only two of its founding team at the company: Altman and Wojciech Zaremba.
“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 said.
Erizia Rubyjeana
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