OpenAI shifts to a for-profit model

OpenAI's non-profit structure will still retain a minority stake once the new changes come in.

OpenAI is considering becoming a public benefit corporation, tasked with turning a profit and also helping society, said the people, who asked not to be identified because the information is private. Also. As per the closed sources, the company is discussing giving Chief Executive Officer Sam Altman a 7% equity stake in the company and

This move is expected to make the company more appealing to investors, though its non-profit entity will still retain a minority stake in the new structure, insiders reportedly revealed.

The proposed changes may also impact how OpenAI manages risks associated with artificial intelligence (AI), as the company adopts a new governance framework. Additionally, OpenAI CEO Sam Altman is set to gain equity in the restructured organisation, which could value the company at around $150 billion, the sources added.

This shake-up follows significant leadership transitions, including the sudden departure of Chief Technology Officer Mira Murati and a temporary leave of absence by President Greg Brockman. OpenAI, founded in 2015, first introduced its for-profit subsidiary, OpenAI LP, in 2019 to secure investments from partners like Microsoft.