OpenAI is restructuring its business model to become for-profit, with insiders speculating that Sam Altman may acquire a stake worth $150 billion.
Artificial Intelligence (AI) leader OpenAI is undergoing a significant restructuring that will remove its current non-profit status.
The company is shifting toward a for-profit model, and its former non-profit board will no longer have control once the changes are finalized.
While discussions about the restructuring have been ongoing, there is no set timeline for completion.
OpenAI, Sam Altman, and Leadership Changes
One of the primary beneficiaries of this restructuring will be the company’s CEO, Sam Altman.
According to a Reuters report citing sources close to the process, Altman is expected to receive substantial equity in the company.
After restructuring, OpenAI’s valuation could reach up to $150 billion, making it one of the most valuable AI companies globally.
Though Altman and the founding team have been developing the company for some time, OpenAI gained significant attention after launching ChatGPT in November 2022.
The chatbot quickly amassed a large user base due to its widespread use cases.
Following the launch, OpenAI began charging for premium access to additional ChatGPT features, which sparked criticism from co-founders like Elon Musk, who expressed concerns about the shift away from the original non-profit model.
This restructuring will enable the company to expand its business as desired.
As per the Reuters report, the non-profit segment of OpenAI will still hold a minority stake in the new for-profit entity.
The restructuring also coincides with major leadership changes at the firm. CTO Mira Murati, who briefly served as interim CEO after Altman was temporarily ousted last December, has announced her departure.
Additionally, OpenAI President Greg Brockman has taken an indefinite leave, following the exit of former Chief Scientist Ilya Sutskever.
Innovation Continues
Despite these sudden changes, OpenAI continues to innovate. As previously reported, the company recently introduced a voice mode for ChatGPT, though access is restricted in key regions such as the UK and European Union.
As one of the key beneficiaries of the restructuring, Sam Altman may be further motivated to enhance OpenAI’s top products.
The company is aiming to revolutionize industries, including video production, and has highlighted the capabilities of its video generation tool, Sora.
With more investment likely flowing into the company in the coming months, it remains to be seen what new products OpenAI will introduce.
