OpenAI, the maker of ChatGPT, is arranging for its core business’s restructure into a for-profit corporation, and will no longer be helmed by its non-profit board, in a bid to attract more investors, according to the people familiar with the matter.
While the non-profit part of OpenAI will still be around and own a small stake in the soon-to-be for-profit company, this move may indicate how the company manages AI risks in its new structure.
CEO Sam Altman will also receive equity worth $150 billion for the first time after the company restructures, the company will attempt to remove the return cap for investors as well.
OpenAI spokesperson said that they are currently working with the board to secure the best position for its non-profit part, to make sure that the company’s direction will remain focused on creating AI for everyone.
The plan for a restructure is being discussed with lawyers and shareholders as of now and a complete timeline for the restructuring is unsettled. The proposed plan itself will highlight a considerable change in its governance structure behind the scenes, according to a Reuters report on the matter.
OpenAI added the for-profit OpenAI LP entity in 2019 as a subsidiary of its non-profit, securing funds from Microsoft for its research. ChatGPT’s successes had OpenAI valuation catapulted from $14 billion in 2021 to $150 billion, attracting investors like Thrive Capital and Apple.
