Sam Altman poised for big windfall as OpenAI eyes for-profit transition

New Delhi: ChatGPT owner OpenAI is reportedly in talks to transition into a for-profit entity, which could see CEO Sam Altman receiving a 7% equity stake in the newly structured company. 

Initially founded as a nonprofit organisation in 2015 with the mission to ensure that artificial general intelligence benefits all of humanity, OpenAI’s reported move took the business world by surprise.

The discussion around granting Altman a stake in the company comes amidst reports of OpenAI seeking to raise fresh capital at a staggering $150 billion valuation, indicating a major shift in its operational strategy. 

The transition to a for-profit model, specifically as a public benefit corporation, would allow OpenAI to balance profit-making with societal contributions, aligning with its original mission but under a new corporate structure.

Until now, Altman has reportedly taken a modest salary. 

The development comes in the backdrop of the departure of key executives like Mira Murati, who announced her decision to step away for personal exploration, highlighting the tumultuous path of the AI giant.

The proposed restructuring involves the creation of a for-profit subsidiary, which would be majority-owned by the existing nonprofit structure. 

This model change follows OpenAI's earlier transition in 2019 when it introduced a for-profit arm to attract venture capital, albeit with profit caps.

In an internal communication, Altman reassured the team about the transition, focusing on the company's continued commitment to its mission while adapting to the realities of scaling AI research and development.