OpenAI is planning a significant restructuring, moving away from its nonprofit core business model to attract more investors. This shift will dissolve the existing board of directors’ authority and grant CEO Sam Altman equity in the company, according to a Reuters report. The move aims to better position the company for future growth and investment opportunities.
OpenAI’s Restructuring and Its Implications
An OpenAI spokesperson reassured that the company’s mission remains unchanged, stating, “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.” While the nonprofit aspect of OpenAI won’t disappear entirely, it will retain a minority stake in the restructured company.
The ChatGPT name next to an OpenAI logo on a black and white background.
This restructuring could potentially award Sam Altman up to $150 billion in equity. This marks a significant turnaround for Altman, who was briefly dismissed from his position by the board of directors in November 2023 before being reinstated.
Recent Departures and Denials
Following Altman’s temporary dismissal and subsequent return, OpenAI has witnessed the departure of several key figures. Researchers Jan Leike and Ilya Sutskever resigned in May 2024, expressing concerns over the company’s prioritization of “shiny products” over safety guidelines. More recently, Chief Technology Officer Mira Murati, Chief Research Officer Bob McGrew, and senior research executive Barret Zoph also announced their resignations. Altman, however, has denied any connection between these departures and the proposed restructuring.
The Future of OpenAI
The restructuring plan is currently under review by OpenAI’s legal team and stakeholders, with no confirmed timeline for completion.
From Nonprofit to Tech Giant
OpenAI was established in 2015 as a nonprofit research organization. To secure investment from Microsoft, it formed a for-profit subsidiary, OpenAI LP, in 2019. The launch of ChatGPT in 2022 propelled OpenAI’s valuation from $14 billion in 2021 to an estimated $150 billion in its latest funding round.
This transition from nonprofit to for-profit highlights OpenAI’s evolving strategy in the competitive AI landscape.
