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OpenAI plans tectonic shift from nonprofit to for-profit, giving Altman equity

  • Thread starter Thread starter Benj Edwards
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Benj Edwards

The OpenAI logo over a tectonic shift in the background.

(credit: Benj Edwards / OpenAI)


On Wednesday, Reuters that OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation, moving away from control by its nonprofit board. The shift marks a dramatic change for the AI company behind , potentially making it more attractive to investors while raising questions about its commitment to sharing the benefits of advanced AI with "all of humanity," as written in its .

A for-profit is a legal structure that allows companies to pursue both financial profits and social or environmental goals, ostensibly balancing shareholder interests with a broader mission to benefit society. It's an approach taken by some of OpenAI's competitors, such as Anthropic and Elon Musk's xAI.

In a notable change under the new plan, CEO Sam Altman would receive equity in the for-profit company for the first time. Bloomberg that OpenAI is discussing giving Altman a 7 percent stake, though the exact details are still under negotiation. This represents a departure from Altman's previous stance of not taking equity in the company, which he had maintained was in line with OpenAI's mission to benefit humanity rather than individuals.


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