A major shake-up is underway at OpenAI. the artificial intelligence research company has announced that it is converting its business from a non-profit board to a for-profit corporation. The publication also reports that Sam Altman will be given equity in the new corporation.
OpenAI’s commercialization does not completely remove its non-profit entity. The nonprofit will have a stake in the new for-profit entity, but it won’t have nearly the same power. An OpenAI spokesperson issued a similar statement Fortune preliminary report on restructuring. Couldn’t they have at least used OpenAI to make a different statement?
“We’re focused on creating AI that benefits everyone, and we’re working with our board to ensure we’re best positioned to succeed in our mission. Nonprofit is and will continue to be at the heart of our mission.”
The for-profit transition will also provide a big payday for CEO Sam Altman. Reuters he says he will buy equity in the company after the restructuring is completed. The fortune of the commercial company can reach 150 billion dollars . The profit model will also remove the cap on investors’ returns.
Altman is reportedly trying to move OpenAI to a more traditional for-profit company . It is not known exactly when the transition will take place as the details of the deal are still going through all the legal steps.
