OpenAI, the artificial intelligence start-up, is moving forward with its plans to restructure as a for-profit company. As part of this restructuring, discussions are underway to grant CEO Sam Altman a stake in the company. OpenAI is considering becoming a public benefit corporation, which is a for-profit entity committed to improving society. This move aims to make the company more appealing to investors.
The start-up, known for its ChatGPT-maker technology, has become one of Silicon Valley’s most valuable companies. It is currently raising over $6 billion at a valuation of $150 billion. However, one condition in the fundraising agreement requires OpenAI to become fully profitable within the next two years. Failure to do so could result in investors requesting their money back.
OpenAI emphasized that it remains focused on building AI that benefits everyone and stated that its non-profit core will continue to exist alongside any potential restructuring efforts.
These discussions come amidst several senior departures from OpenAI. Chief Technology Officer Mira Murati announced her departure from the company along with Chief Research Officer Bob McGrew and Vice President of Research Barret Zoph. These exits have prompted leadership changes within the fast-growing start-up.
OpenAI was initially founded as a non-profit organization dedicated to ensuring that artificial general intelligence benefits humanity as a whole. In 2019, it transitioned into a “capped profit” structure allowing it to raise significant capital from investors like Microsoft.
Sam Altman named Mark Chen as the new Senior Vice President of Research and promoted Josh Achiam from research scientist to Head of Mission Alignment in response to these leadership changes.
Despite these developments, there are no immediate plans for replacing Mira Murati at OpenAI. The company intends on relying on existing technical staff and executives during this transition period.
Over time, OpenAI has experienced several high-profile departures including Greg Brockman taking leave until year-end last August due to personal reasons.
Former and current employees have noted that there has been an increasing focus on commercialization within OpenAI rather than solely pursuing altruistic goals related to artificial general intelligence development.
