OpenAI, the creator of the popular ChatGPT, originally established as a nonprofit with the mission to develop safe and beneficial artificial general intelligence (AGI) for humanity, is reportedly contemplating a restructuring to become a for-profit benefit corporation to attract more investors, according to sources.
For the first time, co-founder and CEO Sam Altman will receive equity in the Microsoft-backed AI startup.
In a notable development, OpenAI's longtime Chief Technology Officer, Mira Murati, has resigned to pursue new ventures. Murati, who served briefly as interim CEO last year during a period of internal upheaval, left following the abrupt removal and subsequent reinstatement of Altman by the board.
Additionally, research chief Bob McGrew and Vice President of Research Barret Zoph have also announced their departures.
Altman acknowledged Murati's resignation on the X platform, praising her significant contributions over the past 6.5 years. "Mira, Bob, and Barret made these decisions independently and amicably. Given the timing, it made sense to handle these transitions simultaneously to ensure a smooth handover to the next leadership generation. I am eager to refocus on the technical and product aspects of our company," Altman stated.
OpenAI was founded as a nonprofit in 2015, and in 2019, it introduced a "capped profit" subsidiary. The current structure, a partnership between the original nonprofit and this capped profit entity, was intended to support OpenAI's mission. According to recent reports, OpenAI plans to transition to a for-profit model, with the nonprofit segment remaining a separate entity.
An OpenAI spokesperson emphasized the company's continued dedication to developing AI that benefits everyone, affirming that the nonprofit aspect remains central to its mission.
Earlier this year, Elon Musk, who co-founded OpenAI, sued the startup, alleging it was prioritizing profitability over its original mission to benefit humanity.
The AI startup's valuation is projected to exceed $150 billion following its upcoming financing round, a significant increase from the $14 billion valuation in 2021. Altman does not hold direct equity in the company but has a small indirect interest through a Y Combinator investment fund.
In the wake of rapid growth, especially after the launch of ChatGPT, OpenAI has seen several key executives depart. Co-founder Ilya Sutskever and former safety leader Jan Leike announced their departure in May, while another co-founder, John Schulman, recently left to join competitor Anthropic.
