OpenAI to remove non-profit control and give Sam Altman equity: Report
The Hindu
OpenAI is reportedly planning to remove the non-profit structure and give CEO Sam Altman stake in the company which could be worth $150 billion.
ChatGPT-maker OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board, people familiar with the matter told Reuters, in a move that will make the company more attractive to investors.
The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, the sources said. The move could also have implications for how the company manages AI risks in a new governance structure.
Chief executive Sam Altman will also receive equity for the first time in the for-profit company, which could be worth $150 billion after the restructuring as it also tries to remove the cap on returns for investors, sources added. The sources requested anonymity to discuss private matters.
"We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist," an OpenAI spokesperson said.
The details of the proposed corporate structure, first reported by Reuters, highlight significant governance changes happening behind the scenes at one of the most important AI companies. The plan is still being hashed out with lawyers and shareholders and the timeline for completing the restructuring remains uncertain, the sources said.
The restructuring also comes amid a series of leadership changes at the startup. OpenAI's longtime chief technology officer Mira Murati abruptly announced her departure from the company on Wednesday. Greg Brockman, OpenAI's president, has also been on leave.
Founded in 2015 as a non-profit AI research organization, OpenAI added the for-profit OpenAI LP entity in 2019 as a subsidiary of its non-profit, securing capital from Microsoft to fund its research.
Mangaluru police arrest four individuals and seize half a kg of MDMA worth ₹50 lakh intended for local youth.
Uddhav Thackeray calls for appointing Leaders of Opposition in Maharashtra Assembly, stressing the need for constitutional compliance ahead of the Winter Session.
Shashi Tharoor highlights English's significance in India, emphasizing its enriched lexicon through Indian word borrowings at a literature festival.
Cricket fans in Vizag enjoyed a thrilling ODI as Kohli, Rohit, and Jaiswal delivered memorable performances for Team India.
Congress leaders, including Kharge and Gandhi, meet to address the Karnataka leadership struggle, planning further discussions.
Kerala's local body polls focus on regional issues and candidates, not a referendum on the LDF government, experts say.
A 74-year-old man and his sister lose ₹80.5 lakh in a digital arrest scam by cyber fraudsters posing as police.
Social Justice Minister honors Dr. B.R. Ambedkar on his death anniversary, joined by top officials in floral tributes and reflections.
NPCIL is to blame for storage of radioactive waste on site of Kudankulam nuclear power plant: Appavu
Tamil Nadu Speaker Appavu criticizes NPCIL for unsafe nuclear waste storage at Kudankulam, urging better solutions for public safety.
Raghavasimhan Sankaranarayanan’s AI innovation, Hathaani, blends the soul of Carnatic music with cutting-edge technology.
Banu Mushtaq discusses the power of storytelling in dismantling societal norms at the Bengaluru Literature Festival.
Sunali Khatun returns home to West Bengal after being detained in Bangladesh, highlighting ongoing struggles for repatriation and justice.
German Chancellor Friedrich Merz visits Israel for the first time to strengthen ties amid recent tensions over the Gaza conflict.