A major restructuring is underway at OpenAI. Reuters reports that the artificial intelligence research company is restructuring its operations from a non-profit board to a for-profit corporation. The paper also reports that Sam Altman will be given an equity stake in the new company.
OpenAI’s transition to a for-profit company won’t mean the non-profit will disappear entirely. The non-profit will have an equity stake in the new for-profit company, but it will likely have less power than it did before. An OpenAI spokesperson issued the exact same statement that Fortune first reported on the restructuring. Couldn’t they have at least used OpenAI’s software to craft a different statement?
“We remain focused on building AI that benefits everyone, and we are working with our board to ensure we are best positioned to achieve our mission. Nonprofits are core to our mission and will remain there for the foreseeable future.”
The move to a for-profit would also mean a big payday for CEO Sam Altman, who will receive a stake in the company once the restructuring is complete, according to Reuters. Some estimates suggest the for-profit company could be worth as much as $150 billion. The for-profit model would also remove any caps on investor profits.
Altman has previously been reported to be seeking to transition OpenAI into a more traditional for-profit company, though it’s unclear exactly when the transition will occur, as the details of the deal are still in the legal process.
