OpenAI Restructuring: Moving Toward For-Profit Control

OpenAI, the company behind ChatGPT, is set to restructure its business model, transitioning into a for-profit benefit corporation. This change would remove the non-profit board's control over the company, making it more appealing to investors. 

A key development is that OpenAI's CEO, Sam Altman, will receive equity in the newly restructured entity. After the move, the company’s valuation could reach as high as $150 billion. This shift comes with plans to remove the cap on investor returns, making OpenAI even more attractive to major investors. Altman had previously avoided equity due to governance concerns but is now set to become a significant stakeholder in the company.

Despite the changes, an OpenAI spokesperson emphasized that the non-profit remains central to the company's mission of developing AI for the public good. However, this new governance structure could impact how the company handles AI risks moving forward.

The restructuring also follows significant leadership shifts at OpenAI. Chief Technology Officer Mira Murati recently announced her resignation, while OpenAI President Greg Brockman has taken a leave of absence. These moves have sparked speculation about the company’s future leadership and direction.

Founded in 2015 as a non-profit, OpenAI added a for-profit arm in 2019, attracting capital from key players like Microsoft (MSFT:US). The company's value surged with the success of ChatGPT, which has over 200 million weekly active users today.

As OpenAI evolves to resemble rivals like Anthropic and Elon Musk's xAI, concerns are rising in the AI safety community. With the dissolution of the super alignment team earlier this year, critics wonder if OpenAI will continue prioritizing AI safety in its pursuit of profit.