OpenAI to Restructure as For-Profit, Sam Altman to Receive 7% Equity Worth $10.5 Billion: Reuters

Sep 25, 2024, 09:13 PM

OpenAI is planning to restructure its core business from a non-profit organization to a for-profit benefit corporation. This significant change, reported by Reuters, will see the non-profit board lose control, retaining only a minority stake. As part of the restructuring, CEO Sam Altman will receive equity in the company for the first time, with reports indicating he could receive a 7% stake. OpenAI's valuation is estimated at $150 billion, making Altman's stake worth approximately $10.5 billion. The restructuring aims to attract more investors and enhance the company's growth potential. Additionally, former CTO Mira Murati has resigned.