OpenAI is planning to restructure its core business into a for-profit benefit corporation, transitioning control away from its non-profit board, Reuters reports.
The restructuring aims to make OpenAI operate more like a typical startup to attract investors while the non-profit will retain a minority. OpenAI CEO Sam Altman is expected to receive equity in the for-profit entity, which could be valued at $150 billion. This decision follows recent leadership changes, including the departure of CTO Mira Murati and a leave of absence by President Greg Brockman.
OpenAI was founded in 2015 as a non-profit and later created a for-profit subsidiary in 2019 to secure funding, especially from Microsoft. The success of ChatGPT in late 2022 has significantly increased its valuation from $14 billion in 2021 to a projected $150 billion.
