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OpenAI, the maker of ChatGPT, is transitioning from a non-profit to a for-profit benefit corporation.
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The restructuring aims to attract investors and could value the company at $150 billion.
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CEO Sam Altman will receive equity in the for-profit entity, marking a shift in his role.
OpenAI, the company behind ChatGPT, is overhauling its business structure. The non-profit organization, founded in 2015, is transitioning to a for-profit benefit corporation. This change aims to make the company more attractive to investors and could result in a $150 billion valuation.
As part of the shift, OpenAI’s non-profit board will relinquish control, and CEO Sam Altman will receive equity in the for-profit entity. This marks a significant change for Altman, who previously declined equity to maintain unbiased governance. The company’s new structure will align with other AI firms like Anthropic and xAI.
The transition raises concerns about OpenAI’s long-term safety goals. The company recently disbanded its superalignment team, tasked with addressing AI risks. While investors welcome the change, some in the AI community may worry about the implications. OpenAI’s valuation has skyrocketed from $14 billion in 2021, driven by ChatGPT’s massive popularity.
The restructuring comes amid significant leadership changes, including the departure of Chief Technology Officer Mira Murati and President Greg Brockman’s leave. OpenAI’s new structure positions the company for growth in the rapidly expanding AI market.
