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What will be OpenAI's valuation post-restructuring by December 31, 2024?
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Official announcement from OpenAI or major financial news outlets
Story
OpenAI to Restructure as For-Profit, Sam Altman to Receive 7% Equity Worth $10.5 Billion
Sep 25, 2024, 10:58 PM
OpenAI is planning to restructure its core business from a non-profit organization into a for-profit benefit corporation. This restructuring will result in the non-profit board losing control, though it will retain a minority stake in the new entity. CEO Sam Altman is set to receive equity for the first time, with reports indicating he could receive a 7% stake, valued at approximately $10.5 billion based on the company's estimated valuation of $150 billion. This shift is aimed at attracting more investors and removing the cap on returns for them. The restructuring comes amid a series of leadership changes, including the departure of longtime Chief Technology Officer Mira Murati.
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