OpenAI is undergoing significant changes, as the company plans to restructure from a non-profit organization to a for-profit corporation. According to Reuters, this transition will grant Sam Altman, the company’s CEO, equity in the newly formed corporation.
Despite the shift to a for-profit model, the non-profit entity of OpenAI will remain in existence, albeit with reduced influence. The non-profit will still hold a stake in the for-profit organization but will not wield the same level of control as before. An OpenAI spokesperson reiterated a statement previously shared with Fortune, emphasizing their dedication to building beneficial AI and ensuring the non-profit’s continued role in their mission.
The anticipated restructuring is also expected to be financially advantageous for Altman, who stands to receive equity in the newly formed company. Estimates suggest that the for-profit company could be valued as high as $150 billion. Additionally, this model would eliminate the cap on investor returns, potentially attracting more capital.
Reports indicate that Altman has been pushing for this transition to a traditional for-profit structure for some time. However, the exact timeline for the switch remains unclear, as the details of the deal are still subject to legal processes.