OpenAI CEO Sam Altman denies receiving equity stake amidst restructuring and executive departures: Report

OpenAI CEO Sam Altman has denied reports that he is set to receive a significant equity stake in the company. During an all-hands meeting held Thursday, Altman addressed employee concerns regarding his lack of equity in the high-valued AI firm, stating that there are "no current plans" for him to receive such compensation, according to CNBC.

Equity Concerns and Board Discussions

Altman and OpenAI's Chief Financial Officer, Sarah Friar, acknowledged that investors have raised concerns about Altman not holding equity in the company he co-founded almost nine years ago. OpenAI Chairman Bret Taylor confirmed that the board has discussed the matter but has not finalised any plans.

"The board has had discussions about whether it would be beneficial to the company and our mission to have Sam be compensated with equity, but no specific figures have been discussed nor have any decisions been made," Taylor said in a statement to CNBC.

Restructuring Considerations and Executive Departures

The meeting followed reports that OpenAI's board is considering restructuring the company into a for-profit entity, with the nonprofit segment remaining separate. This potential shift comes amidst a wave of high-profile executive departures, including CTO Mira Murati, research chief Bob McGrew, and research VP Barret Zoph, all of whom announced their resignations this week.

These departures follow earlier exits by co-founders Ilya Sutskever and John Schulman, and former safety leader Jan Leike.

Altman's Response and Focus on Transition

Altman addressed the departures at the all-hands meeting and in an interview at the Italian Tech Week conference, highlighting that they are unrelated to the potential restructuring and represent "a new generation of leadership."

"I think this will be hopefully a great transition for everyone involved and I hope OpenAI will be stronger for it, as we are for all of our transitions,” he said.

Murati, in a memo to employees, stated that she is "stepping away because I want to create the time and space to do my own exploration,” and will focus on ensuring a smooth transition.

OpenAI's Growth and Future

OpenAI, backed by Microsoft, is reportedly seeking a funding round that would value the company at over $150 billion.

Despite its rapid growth since the launch of ChatGPT in late 2022, the company has faced internal turmoil and executive departures, with concerns about its rapid growth and safety practices.