Official announcements from OpenAI or major financial news outlets

OpenAI Transitions to For-Profit, Sam Altman to Receive 7% Equity Worth $10.5B Amid Executive Departures

Sep 26, 2024, 05:26 AM

OpenAI is undergoing significant changes, transitioning from a non-profit to a for-profit entity. This shift includes removing non-profit limitations and restructuring its governance. CEO Sam Altman is set to receive a 7% equity stake in the company, valued at approximately $10.5 billion, following the latest funding round that values OpenAI at $150 billion. The transition has been marked by the departure of key executives, including CTO Mira Murati and Chief Research Officer Bob McGrew. Altman has addressed these changes, describing them as part of the company's growth, though he acknowledged the abrupt nature of the leadership exits. In November 2023, Altman was ousted from the company and reinstated five days later. The move to a for-profit model has drawn criticism, notably from Elon Musk, who has publicly disapproved of the change.