The San Francisco-based organization is developing a plan to switch its core business to a for-profit benefit corporation, with the original non-profit entity holding a minority stake, sources told Reuters. Altman could receive a seven per cent stake in the reorganized company, sources told Bloomberg. OpenAI told both outlets that the non-profit is core to its mission and will continue to exist. (Reuters, Bloomberg)
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The San Francisco-based organization is developing a plan to switch its core business to a for-profit benefit corporation, with the original non-profit entity holding a minority stake, sources told Reuters. Altman could receive a seven per cent stake in the reorganized company, sources told Bloomberg. OpenAI told both outlets that the non-profit is core to its mission and will continue to exist. (Reuters, Bloomberg)
Talking point: OpenAI’s non-profit is currently the parent company of its commercial business. The startup is reportedly trying to raise US$6.5 billion at a US$150-billion valuation, but those figures hinge on whether it can make investing in the firm more lucrative. Currently, the business has a “capped-profit” rule—adopted in March 2019—which limits employees and backers’ earnings when the company makes money. While Altman has been on the OpenAI non-profit’s board, he’s never owned a stake in the firm. The company has been undergoing major leadership changes, including CTO Mira Murati announcing her resignation Wednesday.
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