OpenAI Shifts to For-Profit Model: ChatGPT Inventor Set to Receive $10 Billion Stake
OpenAI, the AI company founded as a non-profit in 2015 by Sam Altman and other tech executives, is undergoing significant changes. Altman, known for his investments in companies like Stripe and Reddit, is set to receive a substantial stake worth $10 billion as OpenAI transitions to a for-profit model.
Shift Towards For-Profit Model
Originally established with the goal of making AI technology “open source,” OpenAI is now considering granting Altman a 7% stake as it raises funds at a valuation of approximately $150 billion. This move reflects the company's pivot towards a for-profit structure, driven by increasing commercial interest, particularly from tech giants like Microsoft.
Despite these changes, OpenAI remains committed to its mission of developing AI systems that benefit society. The company is exploring the possibility of becoming a public benefit corporation, allowing it to generate profits while prioritizing societal impact.
Leadership Turbulence and Criticism
The shift towards a for-profit model has not been without challenges. Elon Musk, who parted ways with OpenAI in 2018 amid disagreements with Altman and other executives, has criticized the move. Musk stated that converting a non-profit into a for-profit entity is illegal.
Moreover, OpenAI has experienced leadership turmoil, with key figures like Mira Murati and Ilya Sutskever resigning from their positions. Despite these changes, Altman emphasized that such transitions are a natural part of a rapidly growing company.
OpenAI's Commitment
OpenAI's commitment to advancing AI technology for the greater good remains unchanged. While the organization undergoes structural adjustments, the non-profit arm of the company will continue its work.
Sources: bmmagazine.co.uk, bmmagazine.co.uk
