New Report: OpenAI Plans to Transition to For-Profit Status

For the first time, CEO Sam Altman will receive company shares. How might this influence his future management strategy?

OpenAI: From Non-Profit to Profit-Driven

According to Reuters, a significant shift is underway at OpenAI, the AI research firm, as it plans a major restructuring from a non-profit entity to a commercial enterprise.

A Model Change, Not an End

The shift doesn’t spell the end for OpenAI’s non-profit arm. It will still hold a stake in the new commercial entity, albeit with much-reduced influence. An OpenAI spokesperson stated, echoing Fortune‘s initial report on the restructuring: “We remain committed to building AI that benefits everyone, and we are working with our board to ensure we are best positioned to fulfill our mission. The non-profit entity is crucial to our mission and will continue to exist.”

Significant Gain for CEO

Sam Altman, CEO of OpenAI, stands to benefit greatly from this business model shift. Reuters reports that he would receive shares in the new entity upon restructuring completion. Estimates suggest that the value of this new company could soar up to 150 billion dollars. Additionally, moving to a profit-driven model would eliminate caps on investor returns.

An Ongoing Effort

It’s important to note that Sam Altman has been aiming to transition OpenAI into a more traditional profit-making company for some time. However, the exact date of the change remains unknown, with legal details of the deal still being finalized.