OpenAI’s transition to a for-profit model does not imply substantial financial benefits for its CEO, Sam Altman, as he clarified to employees during an all-hands meeting on Thursday. According to a report by CNBC, citing an anonymous employee, Altman stated that there are no active plans to give him a significant equity stake in the new for-profit structure.
This statement from Altman counters earlier reports suggesting OpenAI was contemplating awarding him a 7% stake, potentially increasing his net worth by $10 billion. OpenAI is currently seeking $6.5 billion in investment, aiming for a $150 billion valuation, which would position it among the highest-valued startups globally.
The potential equity grant would significantly enhance Altman’s wealth. Estimates from Forbes already classify him as a billionaire, so this move could place him among the wealthiest individuals worldwide, Bloomberg reported.
During the meeting, both Altman and OpenAI’s CFO, Sarah Friar, discussed investor concerns about Altman not holding any equity in the company. Reuters reported on Thursday that OpenAI is contemplating becoming a for-profit Benefit corporation while retaining its nonprofit arm, which would hold a minority stake in the for-profit entity.
Inquiries regarding Altman receiving equity were redirected to a statement by board chairman Bret Taylor. “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 stated.
These developments come amid significant changes in OpenAI’s leadership. Mira Murati, the company’s chief technology officer, resigned from her role on Wednesday after six-and-a-half years. She was followed by two other senior employees.
Murati announced her departure in a published note on X, stating, “There’s never an ideal time to step away from a place one cherishes, yet this moment feels right.”
OpenAI has experienced a series of high-profile departures in recent months, including two cofounders, Ilya Sutskever and John Schulman. Sutskever, a former board member, facilitated Altman’s brief ouster from the company in November before leaving to start his own AI venture, Safe Superintelligence. Schulman departed to join competitor Anthropic.