"Exclusive News" OpenAI's core business will be restructured into a for-profit company, and the CEO will receive shares -- News
OpenAI plans to restructure its core business into a for-profit benefit corporation, with CEO Altman receiving equity for the first time. This move aims to attract investors, with the company's value expected to reach $150 billion. The non-profit entity will continue to exist, holding a minority stake in the for-profit entity. The restructuring may impact the governance of artificial intelligence risks. A specific timetable has not been determined yet and is still under discussion with lawyers and shareholders
SAN FRANCISCO, Sept 25 (Reuters) - Informed sources familiar with the matter told Reuters that OpenAI, the maker of ChatGPT, is developing a plan to restructure its core business into a for-profit benefit corporation, no longer controlled by its non-profit board of directors. This move will make the company more attractive to investors.
The sources said that the non-profit arm of OpenAI will continue to exist and hold a minority stake in the for-profit entity. This move may also impact how the company manages artificial intelligence risks in the new governance structure.
The sources added that OpenAI CEO Sam Altman will also receive equity in the for-profit company for the first time, and the restructured company could be valued at $150 billion, with the company also attempting to remove the cap on investor returns. The sources requested anonymity to discuss undisclosed matters.
"We remain focused on building AI for the benefit of all, and we are working with the board to ensure that we can fulfill our mission in the best possible way. The non-profit is at the core of our mission and will continue to exist," an OpenAI spokesperson said.
Reuters first reported the details of the proposed company structure. The sources said that the company is still in discussions with lawyers and shareholders about the plan, and the timeline for completing the restructuring is still uncertain