OpenAI plans to convert to a for-profit company, give Sam Altman 7% stake
OpenAI plans to give CEO Sam Altman a 7% equity stake and transition to a for-profit model. This follows senior management departures in the company.
OpenAI is planning to reportedly give its CEO Sam Altman a 7% equity stake in the company and restructure to become a for-profit business. This would mark the first major shift in the artificial intelligence startup as the company is considering becoming a public benefit corporation- generating profit and helping society.
When will OpenAI shift to a for-profit company?
Read more: Sam Altman says superintelligence is coming: ‘Going to get so good, so soon’
The transition is still under discussion and a timeline has not been determined, Bloomberg reported citing people in the know. However, a spokesperson said OpenAI remains “focused on building AI that benefits everyone,” adding, “the nonprofit is core to our mission and will continue to exist.”
What has prompted these changes in OpenAI?
Read more: OpenAI's Sam Altman says doing psychedelics in Mexico changed his life: ‘Made me calm’
OpenAI is mulling these changes amid an exodus of senior managers as the company's Chief Technology Officer Mira Murati said she is leaving- the latest high-profile departure from the startup. In a statement on X, Mira Murati said she was “stepping away because I want to create the time and space to do my own exploration.” Responding to her post, Sam Altman expressed “tremendous gratitude” saying, “It’s hard to overstate how much Mira has meant to OpenAI, our mission, and to us all personally.” He also said that he would share more with employees about transition plans soon.
Read more: Meet iPhone designer Jony Ive who is working on AI device with Sam Altman
Why Sam Altman had not taken equity before?
OpenAI was founded in 2015 as a nonprofit research organization to build artificial intelligence that would be safe and beneficial to humanity. The company created a for-profit subsidiary in 2019 to help fund the high costs of AI model development. In keeping with the company’s nonprofit origins, Sam Altman had not taken equity, stressing that the company was meant to broadly benefit society and that he had enough money.
{{/usCountry}}OpenAI was founded in 2015 as a nonprofit research organization to build artificial intelligence that would be safe and beneficial to humanity. The company created a for-profit subsidiary in 2019 to help fund the high costs of AI model development. In keeping with the company’s nonprofit origins, Sam Altman had not taken equity, stressing that the company was meant to broadly benefit society and that he had enough money.
{{/usCountry}}