ChatGPT maker OpenAI is preparing to overhaul its business structure, moving from non-profit control to a for-profit benefit corporation, according to a report by Reuters. The restructuring would shift control away from its current non-profit board, aiming to make the company more attractive to investors. Though the non-profit arm will still exist and retain a minority stake, the changes could have significant implications for how OpenAI is governed and how it handles AI safety.
As part of the shift, OpenAI CEO Sam Altman is set to receive equity in the for-profit entity for the first time, the report claims. The company could be valued at $150 billion following the restructuring, and it’s also looking to remove the cap on investor returns. While the details are still being finalised, this move would align OpenAI’s structure with other AI companies like Anthropic and Elon Musk’s xAI.
The changes come as OpenAI experiences significant leadership turnover. Chief Technology Officer Mira Murati announced her departure this week, and company president Greg Brockman is currently on leave. This follows a turbulent period for OpenAI, including last year’s brief ousting of Altman by the non-profit board, which raised concerns about the company’s internal governance.
Founded in 2015 as a non-profit research organisation, OpenAI gained global attention with the release of ChatGPT in 2022, a generative AI app that skyrocketed in popularity and now boasts over 200 million weekly users. The company’s valuation has soared from $14 billion in 2021 to its projected $150 billion, thanks to growing interest in AI.
While investors have largely welcomed the shift toward a for-profit structure, some in the AI community may be concerned about the impact on OpenAI’s long-term safety goals. Earlier this year, the company disbanded its superalignment team, which was tasked with addressing the long-term risks associated with AI.
Altman’s equity stake is still under negotiation, but his decision to accept shares represents a shift in his role at OpenAI, where he previously declined equity to ensure unbiased board governance. Now, the company’s new structure is poised to make it more competitive in the fast-growing AI market.