Sep 25 (V7N) – OpenAI, the company behind ChatGPT, is planning to restructure its core business into a for-profit benefit corporation, shifting control away from its non-profit board, according to sources familiar with the situation. While the non-profit will continue to hold a minority stake, this change is designed to make OpenAI more appealing to investors. CEO Sam Altman will receive equity for the first time, potentially valuing the company at $150 billion after the restructuring, which could also lift the cap on investor returns.

An OpenAI spokesperson emphasized the company's commitment to building AI that benefits everyone, noting that the non-profit remains central to its mission. The restructuring, still in the works, marks a significant shift in governance at one of the world’s leading AI firms. The process follows recent leadership changes, including the departure of CTO Mira Murati and the leave of absence taken by President Greg Brockman.

Founded in 2015 as a non-profit research organization, OpenAI created the for-profit OpenAI LP in 2019, with Microsoft investing to support its research. The company's profile surged after the launch of ChatGPT in 2022, with the app amassing over 200 million weekly users. OpenAI’s valuation has soared, now estimated at $150 billion, drawing the interest of investors such as Thrive Capital and Apple.

OpenAI’s current structure, where the non-profit controls the for-profit arm, was originally intended to ensure the safe development of artificial general intelligence (AGI). However, concerns arose after the non-profit board briefly ousted Altman in a major boardroom dispute last year, though he was reinstated shortly after. The planned restructuring has been welcomed by investors but has raised concerns about the company’s ability to self-regulate in its pursuit of AGI, particularly after dissolving its AI safety-focused superalignment team earlier this year.

Altman, already a billionaire from various startup ventures, had previously declined an equity stake, citing the need for a board with independent directors. The new structure would resemble that of Anthropic and Elon Musk's xAI, which are registered as benefit corporations, emphasizing social responsibility alongside profits.

END/MSS/RH