OpenAI CEO Sam Altman may gain an estimated 7% equity valued at over $10 billion in the company|World Economic Forum|CC BY-NC-SA 2.0
The most prominent name in AI tech, OpenAI—the maker of ChatGPT—is exploring major restructuring from a nonprofit model to a for-profit one, overseen by CEO Sam Altman.
OpenAI started in 2015 as a nonprofit organization and later created a subsidiary that was for-profit. With the new changes, CEO Sam Altman will reportedly gain full control of the AI firm along with an estimated 7% equity valued at over $10 billion.
The changes aim to attract billions from potential investors, with Microsoft, Apple and Nvidia already involved. OpenAI is reportedly seeking $6.5 billion in funding with a valuation of $150 billion. The company is currently valued at over $100 billion.
But it’s not all rosy
Following the news, three of its top executives, including long-term CTO Mira Murati, quit this week.
Murati said her decision was personal. Altman admitted her departure was a surprise but said leadership changes are natural in fast-growing companies.
Of the 11 cofounders of OpenAI, only two, including Altman, remain in the startup.
Several suspect the employee exits are due to differences of opinion in OpenAI’s profit-oriented business models.