OpenAI is planning to no longer be a nonprofit
OpenAI, the company behind ChatGPT, is planning to restructure its business into a for-profit benefit corporation, no longer under the control of its non-profit board, according to sources familiar with the situation. This change is aimed at making OpenAI more appealing to investors. While the non-profit will continue to exist and hold a minority stake in the new entity, the restructuring could impact how the company addresses AI risks under a different governance model.
CEO Sam Altman will also gain equity in the new for-profit company for the first time. After restructuring, OpenAI's valuation could reach $150 billion as it seeks to remove caps on investor returns, according to sources. These changes are still in progress, and the timeline remains unclear.
An OpenAI spokesperson emphasized that the company is committed to its mission of creating AI for the benefit of all and that the non-profit arm will remain integral to that mission. This restructuring reflects significant governance shifts at OpenAI, which is still in the process of being finalized.
The changes coincide with a shake-up in OpenAI's leadership, including the recent departure of longtime chief technology officer Mira Murati and president Greg Brockman’s leave of absence.
OpenAI was founded in 2015 as a non-profit focused on AI research, adding a for-profit subsidiary, OpenAI LP, in 2019 to secure funding, including significant investment from Microsoft. The company gained worldwide attention with the launch of ChatGPT in 2022, a breakthrough in generative AI, which quickly amassed over 200 million weekly active users and sparked a global AI investment boom. As a result, OpenAI’s valuation has surged from $14 billion in 2021 to $150 billion in its latest convertible debt round.
Originally, OpenAI’s structure placed control of its for-profit subsidiary under the non-profit board to ensure the safe development of artificial general intelligence (AGI). However, this structure came under scrutiny last November during a dramatic leadership crisis in which the non-profit board ousted Altman, only to reinstate him after five days amid widespread support from employees and investors.
OpenAI's refreshed board, now chaired by former Salesforce co-CEO Bret Taylor, must approve any changes to the corporate structure. Investors generally welcome the shift toward a more typical startup model, but the potential removal of non-profit oversight has raised concerns in the AI safety community about the company’s accountability in pursuing AGI. Earlier this year, OpenAI dissolved its superalignment team, which focused on managing long-term AI risks.
The amount of equity Altman will receive remains unknown. Despite being a billionaire from previous ventures, Altman has stated that he initially chose not to take equity in OpenAI to ensure the board had disinterested directors. He has also expressed that he is motivated by a passion for the work rather than financial gain.
The restructured OpenAI will be similar to rivals like Anthropic and Elon Musk’s xAI, which operate as benefit corporations—profit-driven entities that also prioritize social responsibility and sustainability.