OpenAI plans tectonic shift from nonprofit to for-profit, giving Altman equity
Enlarge (credit: Benj Edwards / OpenAI)
On Wednesday, Reuters reported that OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation, moving away from control by its nonprofit board. The shift marks a dramatic change for the AI company behind ChatGPT, potentially making it more attractive to investors while raising questions about its commitment to sharing the benefits of advanced AI with “all of humanity,” as written in its charter.
A for-profit benefit corporation is a legal structure that allows companies to pursue both financial profits and social or environmental goals, ostensibly balancing shareholder interests with a broader mission to benefit society. It’s an approach taken by some of OpenAI’s competitors, such as Anthropic and Elon Musk’s xAI.
In a notable change under the new plan, CEO Sam Altman would receive equity in the for-profit company for the first time. Bloomberg reports that OpenAI is discussing giving Altman a 7 percent stake, though the exact details are still under negotiation. This represents a departure from Altman’s previous stance of not taking equity in the company, which he had maintained was in line with OpenAI’s mission to benefit humanity rather than individuals.
