OpenAI shifts to profit model as CEO Altman gains equity stake amid leadership changes

OpenAI is undergoing a major restructuring that will see its nonprofit board relinquish control over its for-profit operations.

The move, reported by Reuters, will convert OpenAI into a for-profit benefit corporation, making it more attractive to investors.

As part of the restructuring, CEO Sam Altman will gain an equity stake in the company for the first time.

The nonprofit arm of OpenAI will continue to exist, holding a minority stake in the for-profit Business, but its iNFLuence over operations will be reduced.

An OpenAI spokesperson reassured that the company's mission to develop AI that benefits humanity remains unchanged, and the nonprofit component remains central to that goal.

However, the governance shift has raised concerns within the AI safety community, as OpenAI recently disbanded its superalignment team, which was focused on mitigating long-term risks from AI development.

This transition comes during a period of significant leadership changes at OpenAI. Chief Technology Officer (CTO) Mira Murati has announced her departure, joining the ranks of other high-profile exits, including co-founder Greg Brockman, who is currently on leave.

Murati, who played a crucial role in developing OpenAI's flagship product ChatGPT, said she is leaving to create "time and space" for personal exploration.

Her decision was revealed just before OpenAI's major annual developer conference.

In response to Murati’s departure, Altman shared a note on social media praising her contributions to OpenAI’s growth, from an unknown research lab to a major player in the AI industry.

Altman also announced that two other top-level executives, Bob and Barret, are departing, although these decisions were made independently.

Murati briefly served as interim CEO last year during a period of turbulence at OpenAI, when Altman was temporarily ousted by the board of directors.

Her departure marks a significant shift for the company as it moves toward new leadership and a more investor-friendly structure.

OpenAI, which was founded in 2015 as a nonprofit focused on safe AI development, gained widespread attention following the launch of ChatGPT in 2022.

The company's valuation has since soared, with current discussions to raise $6.5 billion at a $150 billion valuation, up from $86 billion earlier this year.

While the shift to a for-profit model may offer OpenAI greater flexibility in attracting investment,

it has sparked concerns about the company's commitment to AI safety and long-term oversight, especially in its pursuit of artificial general intelligence (AGI).

Critics worry that without nonprofit control, OpenAI may prioritize profit over its founding mission of ensuring AI's benefits are widely shared.

In the coming months, the restructuring will be closely watched as OpenAI navigates this pivotal moment in its evolution, balancing the demands of investors with its broader mission of responsible AI development.