OpenAI describes its business structure as “a partnership between our original non-profit organization and a new limited for-profit arm.” This structure stood out as one of the main reasons for the short-lived board coup against CEO Sam Altman last year and the lawsuit filed by Elon Musk, one of the company’s founders. However, a change in this structure is expected with a new financing round that could value the company, the creator of ChatGPT, at more than $150 billion. As part of this new plan, Sam Altman may receive an equity stake for the first time, Reuters reported, citing unnamed sources. Bloomberg reports that this share may be around 7 percent.
Reuters’ sources stated that in the new structure, OpenAI will operate as a for-profit benefit company. This structure will have a structure similar to the business model of rival artificial intelligence company Anthropic. The company will no longer be under the control of the nonprofit board of directors and will become more attractive to investors.
However, the nonprofit will remain a minority shareholder of the company. Concerns about how OpenAI will balance security with potential profit may grow further, especially as work continues to develop AI models capable of more advanced reasoning.
Senior management departures continue at OpenAI as Sam Altman stays
In the letter Sam Altman published after his return as CEO in November last year, he emphasized “improving our management structure”. While important steps have been taken in this process, it seems that some managers have left the company. OpenAI CTO Mira Murati announced that she is leaving her position as of yesterday. President Greg Brockman is on leave and former chief scientist Ilya Sutskever left the company earlier this year, Reuters reported.
OpenAI’s release from the control of its nonprofit structure could increase investor interest. However, how the company will achieve the balance between AI security and commercial profits remains a key question for future developments. While this new structure may accelerate the company’s commercial success, it also raises concerns that security measures may be neglected.
The news that Sam Altman will hold a stake in the company stands out as an important part of OpenAI’s structural changes. On the other hand, changes in the company’s management level and the departure of senior executives show that this transformation may be a painful process.