ChatGPT maker OpenAI to remove non-profit board's control; Sam Altman to get equity stake: Report
San Francisco: ChatGPT creator OpenAI is planning to restructure its core business into a for-profit benefit corporation, which would no longer be under the control of its non-profit board, Reuters reported.
This change aims to make the company more appealing to investors.
The non-profit arm will continue to exist and retain a minority stake in the for-profit entity. This new governance model could also impact how the company addresses AI risks.
The proposed restructuring indicates important internal governance changes at one of the leading AI companies.
The plan is still being discussed with legal advisors and shareholders, and the timeline for its completion remains uncertain.
This development comes amid with several leadership shifts at OpenAI. Chief Technology Officer Mira Murati unexpectedly left the company on Wednesday, and President Greg Brockman is currently on leave.
OpenAI's unique structure, designed to give its nonprofit arm control over its for-profit subsidiary, was intended to ensure the development of "safe AGI that is broadly beneficial."
This governance model came under scrutiny last November when the nonprofit board removed CEO Sam Altman over communication issues and trust concerns, though he was reinstated within five days due to strong employee and investor support.
Since then, OpenAI’s board has been restructured with more tech leaders, now chaired by Bret Taylor, former Salesforce co-CEO. Any significant corporate changes require approval from the nonprofit board.
Investors are generally in favour of reducing nonprofit control, which could make OpenAI function more like a traditional startup.
However, this shift has been called out by the AI safety community over accountability, especially after the company dissolved its superalignment team focused on long-term AI risks earlier this year.
Altman, who has previously declined equity in the company to maintain board impartiality, remains committed to his role despite being a billionaire from other investments.
The new structure would align OpenAI more closely with its rivals, Anthropic and Elon Musk’s xAI, which operate as benefit corporations aiming to balance profitability with social responsibility.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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