A big shake-up is in the works at OpenAI. reported that the intelligence research company is restructuring its business from a non-profit board to a for-profit company. The letter also says that Sam Altman will be given equity in the new company.
OpenAI’s move to for-profit won’t completely eliminate its non-profit organization. A non-profit organization will have a stake in the new for-profit business but will not have nearly the power. An OpenAI spokesperson gave a similar statement to the one they gave us For Fortune preliminary report on restructuring. Couldn’t they at least use the OpenAI software to make a different statement?
“We remain focused on building AI that benefits everyone, and we’re working with our board to ensure we’re in the best possible position to succeed in our mission. Not-for-profit is at the core of our mission and will continue to be.”
The move to for-profit will also provide a big payday for CEO Sam Altman. Reuters he says he will get equity in the company once the restructuring is complete. The value of the profitable company can reach $150 billion, according to. The profit model will also remove the profit cap for investors.
Altman was reportedly trying to move OpenAI to a traditional for-profit company. It is not known exactly when the change will take place as the details of the agreement are still working through the legal process.
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